TIDMYGEN
RNS Number : 1260F
Yourgene Health PLC
03 November 2022
Yourgene Health plc
("Yourgene", the "Company" or the "Group")
First half trading update
Manchester, UK - 03 November 2022: Yourgene (AIM: YGEN), a
leading international molecular diagnostics group, provides the
following unaudited trading update for the six months ended 30
September 2022 ("H1 FY23") .
Highlights
Core revenues for H1 FY23, i.e. excluding COVID-related
activities, were GBP8.0m (H1 FY22: GBP7.0m), an increase of 14%.
Total revenues on a statutory basis were GBP9.6m (H1 FY22:
GBP17.5m) reflecting the transition away from COVID services
post-pandemic, and in total representing over 40% of consensus
market expectations for the full year which is consistent with the
historical H1 / H2 pattern.
The revenue breakdown across the Group's portfolio of
technologies and services, in each case excluding those derived
from COVID-related activities, is as follows:
-- Recurring revenues, i.e. excluding one-off hardware sales,
were up 20% to GBP5.5m (H1 FY22: GBP4.7m)
-- Genomic Technologies revenues increased by 10% to GBP6.1m (H1 FY22: GBP5.5m)
- NIPT category up 18% year-on-year demonstrating a continuing recovery post pandemic
- Ranger(R) Technology revenue run rate now over USD $2.0m per annum
- Growth pipeline being converted, including three new NIPT
accounts won in H1 and being installed early in H2
-- Genomic Services revenues up 26% to GBP1.9m (H1 FY22: GBP1.5m)
- NIPT services up 50% to GBP1.3m on the back of Asia reopening post COVID
- Steady progress in building a broader research and oncology service portfolio
The year-to-date performance and healthy commercial pipeline
supports unchanged management revenue expectations for the year as
a whole. In line with other businesses in the UK facing
inflationary and economic pressures and currency fluctuations, the
Company is experiencing some erosion to margins which will only
partially be offset by existing measures to mitigate these effects.
The Company has prioritised expanding market share in its core
markets above near-term margin protection and therefore expects
margins to remain below the 60% level previously forecast for the
remainder of the financial year.
In line with previous announcements, the Company remains on
track to reduce its operating costs by GBP5m, approximately
one-third, in the current financial year when compared to FY22,
excluding restructuring expenses. To mitigate the margin pressures,
the Board continues to assess its cost base in the context of its
pipeline of commercial partnerships and discretionary investment
options. The Board is confident that it can further reduce
operating costs to achieve positive adjusted EBITDA in the next
financial year, and can exercise control over discretionary
spending and working capital to manage the Group's financial
position. The necessary decisions will be taken as commercial
progress in the second half of the financial year becomes
clearer.
Lyn Rees, Chief Executive Officer of Yourgene, commented: "This
continues to be a year of transition for Yourgene, with encouraging
delivery of top line performance in the first half creating a solid
base for expected future growth. It is particularly pleasing that
the core business has shown improved momentum in such difficult
macroeconomic conditions. Whilst margins have been impacted by the
current external environment, we are continuing to reshape the
business and are evaluating the best ways to manage costs without
constraining future growth where possible. The year-to-date
performance informs the Board's confidence in the business
remaining on track to deliver full-year revenues in line with
expectations and to prioritise market penetration over near-term
EBITDA delivery. Yourgene remains well placed to exploit the
opportunities available to its growing portfolio of genomic
products and services and, with additional partnerships in place
and being added, is expanding its market access to create
significant strategic value."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation.
The Directors of the Company take responsibility for this
announcement.
Yourgene Health plc Tel: +44 (0)161 669 8122
Lyn Rees, Chief Executive Officer investors@yourgene-health.com
Barry Hextall, Chief Financial Officer
Joanne Cross, Director of Marketing
Cairn Financial Advisers LLP (NOMAD) Tel: +44 (0)20 7213 0880
Liam Murray / James Caithie / Ludovico
Lazzaretti
Singer Capital Markets (Corporate Tel: +44 (0)20 7496 3000
Broker)
Aubrey Powell / Tom Salvesen / George
Tzimas
Walbrook PR Ltd (Media and Investor Tel: +44 (0)20 7933 8780 or yourgene@walbrookpr.com
Relations)
Paul McManus / Lianne Applegarth Mob: 07980 541 893 / 07584 391 303
/ Alice Woodings / 07407 804 654
About Yourgene Health
Yourgene Health is an international molecular diagnostics group
which develops integrated genomic technologies and services
enabling precision medicine. The group works in partnership with
global leaders in DNA technology to advance diagnostic science.
Yourgene primarily develops, manufactures, and commercialises
simple and accurate molecular diagnostic solutions, for
reproductive health, precision medicine and now infectious
diseases. The Group's flagship products include non-invasive
prenatal tests (NIPT) for Down's Syndrome and other genetic
disorders, Cystic Fibrosis screening tests, invasive rapid
aneuploidy tests, and a recent extension into the oncology space
with DPYD genotyping.
The launch of Yourgene Genomic Services has enabled Yourgene to
offer a global laboratory service network equipped to be a full
life-cycle partner for clinical, research and pharmaceutical
organisations to support partners at the preclinical, clinical, and
post-market stages to develop, manufacture, obtain regulatory
approval and commercialise new products and services. In addition,
Yourgene Genomic Services offers an NIPT and high throughput
COVID-19 testing service.
In August 2020, Yourgene acquired Coastal Genomics , Inc., a
sample preparation technology company based in Vancouver, Canada,
enabling the Company to extend its offering and IP portfolio in the
DNA sample preparation sector. The acquisition increased Yourgene's
geographical penetration into the US and Canada, supplementing
existing coverage in the UK, Europe, MEA and Asia.
Yourgene Health is headquartered in Manchester, UK with offices
in Taipei, Singapore, the US and Canada, and is listed on the
London Stock Exchange's AIM market under the ticker "YGEN". For
more information visit www.yourgene-health.com and follow us on
twitter @Yourgene_Health.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
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END
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