TIDMSBI
RNS Number : 5193G
SourceBio International PLC
27 July 2021
SourceBio International plc
("SourceBio", the "Company" or the "Group")
Half Year Trading Update
Solid half year results, with significant growth anticipated in
second half
Strong balance sheet position, cash more than doubled since
start of year, no debt
SourceBio International plc (AIM: SBI), the international
provider of integrated state of the art laboratory services and
products , provides a trading update for the half year ended 30
June 2021 confirming considerable growth in both revenues and
EBITDA year-on-year.
Key H1 highlights
-- Revenues up almost four-fold to c. GBP37.3 million (H1 2020: GBP10.6 million)
-- Adjusted EBITDA (1) of approximately GBP11.2 million, an
almost seven-fold increase (H1 2020: GBP1.7 million)
-- Cash at 30 June 2021 more than doubled to GBP17.2 million (31
December 2020: GBP8.4 million, 30 June 2020: GBP1.5 million)
-- Debt free compared to borrowings on 30 June 2020 of GBP101.3 million
-- Recovery in Q2 of Cellular Pathology business following the
impact of COVID-19 as elective surgeries return
-- Strong bias to H2 expected given anticipated H2 weighting and
growth in travel related COVID-19 testing revenues
As reported in June 2021, the Group's long standing business
units of Healthcare Diagnostics, Genomics and Stability Storage are
all now back to normal levels of trading following the impact of
COVID-19 from March 2020 and all business divisions are being
challenged to accelerate their growth. The Group's Cellular
Pathology testing services saw very solid recovery in the second
quarter of 2021, driven by the demands created as inroads are being
made to tackle the significant backlog of elective surgeries.
As previously reported, the Company anticipates a strong second
half bias to revenues, earnings and cash generation, largely driven
by the phasing of COVID-19 testing revenues generated through its
newest business unit, Infectious Disease Testing. The Group had a
solid first half and has completed more than 600,000 PCR-based
tests from its laboratory in Nottingham during the period, in
addition to tests delivered through mobile units, generating
divisional revenues in the half year of approximately GBP28.4
million compared to GBP2.2 million in the first half of 2020. The
Group is planning for a significant uplift in demand in the third
quarter driven by the anticipated increase in COVID-19 testing as
travel restrictions continue to be lifted. The Group has already
seen a marked uptick during July with daily testing volumes rising
from under 4,000 tests per day in June to approximately 9,000 tests
daily at present, well within the Group's existing capacity.
Testing demand is expected to rise further and, accordingly, the
Group has made preparations to expand its capacity to more than
20,000 tests per day. Should demand exceed these levels, the Group
has further arrangements to leverage surplus capacity within a
third party owned laboratory.
Trading during the current quarter will be a key indicator to
the full year outturn. Whilst the current environment remains fluid
with ever changing travel restrictions, the Board believes the
Group is currently trading in line with expectations.
Full details of the Group's financial performance for the first
half of 2021 together with an update on the summer trading and a
fuller outlook for 2021 will be provided in the Company's unaudited
interim results, which are expected to be announced on Tuesday 28
September 2021.
(1) Adjusted EBITDA is earnings before interest, tax,
depreciation and amortisation, excluding exceptional items and
share based payments
Jay LeCoque, Executive Chairman, commented: "We are pleased with
progress in the first half year and are looking forward to
capitalising on the further opportunities we expect in the second
half. More specifically, travel related COVID-19 testing services
and the increased pace of elective surgeries leading to greater
Cellular Pathology services demand. We are already seeing and
expect a very busy second half year."
Contacts:
SourceBio International plc www.sourcebiointernational.com
Jay LeCoque, Executive Chairman Via Walbrook PR
Tony Ratcliffe, Chief Financial Officer
Liberum (Nominated Adviser and Broker) Tel: 020 3100 2000
Bidhi Bhoma / R ichard Lindley / Euan Brown
Walbrook PR Limited Tel: 020 7933 8780 or sourcebio@walbrookpr.com
Paul McManus / Sam Allen Mob: 07980 541 893 / 07502
558 258
About SourceBio International plc
www.sourcebiointernational.com
SourceBio is a leading international provider of integrated
state-of-the-art laboratory services and products with clients in
the healthcare, clinical, life science research and biopharma
industries, with a focus on improving patient diagnosis, management
and care. Group revenues are derived from four core businesses
areas:
-- Infectious Disease Testing - a range of COVID-19 testing
services for commercial enterprises, private healthcare groups, NHS
and the DHSC. Utilising multiple technologies, SourceBio offers
screening, gold standard RT-PCR and whole genome sequencing
COVID-19 testing solutions and operates under ISO 15189
accreditation required by the DHSC. SourceBio also provides
employee testing solutions to industry, direct to consumer home
test kits (including 'Fit to Fly', 'Test to Release' and '2 & 8
Day International Travel' approved tests) whilst also being the
lead operator on mobile testing unit services to support outbreak
testing for the DHSC, event and venue testing.
-- Healthcare Diagnostics - histopathology cancer screening and
clinical diagnostic services for the NHS and private healthcare
across the UK and Ireland.
-- Genomics - DNA sequencing services for pharmaceutical and
biotechnology companies, academia, contract research organisations
(CROs) and other research groups in the UK, Europe and North
America.
-- Stability Storage - shelf-life testing services and equipment for pharmaceutical and biotechnology companies, contract manufacturers and analytical testing companies from around the world but primarily in the UK, Ireland and the USA.
More details on Group operations can be found here:
www.sourcebioscience.com .
SourceBio International plc (SBI) is listed on the AIM market of
the London Stock Exchange.
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END
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