Niox Group PLC Trading Update (2768G)
18 July 2023 - 4:00PM
UK Regulatory
TIDMNIOX
RNS Number : 2768G
Niox Group PLC
18 July 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("UK MAR"), and is disclosed in accordance
with the Company's obligations under Article 17 of UK MAR. The
persons taking responsibility for this announcement are the Company
contacts named below.
NIOX GROUP PLC
("NIOX" or the "Company" and, together with its subsidiaries,
the "Group")
Trading Update
Continuing growth driven by Clinical Business
Oxford, UK - 18 July 2023: NIOX Group plc (AIM: NIOX), a company
engaged in the design, development and commercialisation of medical
devices for asthma diagnosis and management, today announces a
trading update for the six months ended 30 June 2023 ("H1
2023").
Highlights
-- Revenue growth of 22% to approximately GBP18.8m
-- Core Clinical revenue growth of 29% to approximately GBP16.7m
-- Adjusted EBITDA (1) of approximately GBP6.2m (H1 2022: GBP3.2m)
-- Strong balance sheet with cash of GBP23.8m (31 December 2022: GBP19.4m)
Unaudited revenues for the six months ended 30 June 2023 were
approximately GBP18.8m, up 22% on the same period last year (H1
2022: GBP15.5m). Clinical revenues grew 29% to approximately
GBP16.7m (H1 2022: GBP13.0m). The strong performance in Clinical
revenue more than compensated for a reduction in Research revenues
to GBP2.1m compared with what was a strong H1 in 2022
(GBP2.5m).
Strong growth in clinical revenues, improved gross margins
largely driven by revenue mix together with a reduction in
overheads period on period has resulted in H1 2023 adjusted
EBITDA(1) of approximately GBP6.2m compared with GBP3.2m in H1
2022.
Unaudited net cash at 30 June 2023 was GBP23.8m (31 December
2021: GBP19.4m) with the Group's continuing activities producing a
cash inflow of GBP5.5m in the period. Returns payments for the
discontinued COPD business during the first half, were GBP1.1m and
there were no rebate payments or claims in the first half.
As previously announced, a special dividend of 2.5p per share
(equating to a return of cash of approximately GBP10.5m) will be
paid on 15 September 2023 to shareholders on the register as at the
close of business on Friday 18 August 2023. The Group is now
generating sufficient operating cashflow to permit both continued
investment in the development of its business and the payment of
ongoing dividends to shareholders.
NIOX expects to release its Interim Results for the six months
ended 30 June 2023 on 26 September 2023.
Ian Johnson, NIOX's Executive Chairman, said: "I am pleased to
report continued growth in revenues and profits in the first half
of the current financial year. It is particularly satisfying to
describe the strong growth in our core Clinical business, which
continues to benefit from a high degree of recurring revenues.
We indicated at the time of our AGM in May that adjusted EBITDA
(1) would be significantly higher than management expectations at
the start of the year. After two further full months of strong
trading, particularly in the APAC region, management's expectations
for the year end outturn have been subject to further material
upgrade.
The Company is now in a strong financial position and with
positive momentum in the business. I look forward to updating
shareholders again at the time of the half-year results."
(1) Adjusted EBITDA excludes depreciation, amortisation,
impairment and share option charges
Contacts
NIOX
Ian Johnson, Executive Chairman Tel: +44 (0) 1865 405 560
Michael Roller, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker)
Aubrey Powell/ Jen Boorer Tel: +44 (0) 20 7496 3000
About NIOX
Our mission is to improve asthma diagnosis and management by
greater patient access to FeNO testing. Asthma is one of the
biggest healthcare issues globally with 340 million sufferers, many
of whom are undiagnosed or are misdiagnosed. The Group is engaged
in the design, development, and commercialisation of medical
devices for the measurement of FeNO, a precise biomarker for
asthma. Our market leading device, NIOX VERO(R), is increasingly
recognised by healthcare professionals as an important tool to
improve the diagnosis and management of asthma. NIOX VERO(R) is
also the device of choice by leading clinical research
organisations for respiratory studies.
NIOX provides products and services via its direct sales
organisation and extensive distributor network in 50 countries. For
more information, please visit www.niox.com
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