REG - Abingdon Health PLC - Half-year Report
24/03/2025 07:00
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RNS Number : 7642B Abingdon Health PLC 24 March 2025
Abingdon Health plc
("Abingdon" or "the Company" or "the Group")
Interim Results for the six months ended 31 December 2024
York, U.K - 24 March 2025: Abingdon Health plc (AIM: ABDX), a leading
international developer, manufacturer and distributor of high quality and
effective rapid tests, announces its unaudited interim results for the six
months ended 31 December 2024 ("H1 2025").
Operational Highlights (including post-period end)
· Expansion of integrated contract development and manufacturing
organisation ("CDMO") service offering with:
o Acquisition
(https://www.londonstockexchange.com/news-article/ABDX/proposed-acquisition-and-placing-notice-of-gm/16584839)
of regulatory service provider CS Lifesciences in August 2024 for a maximum
consideration of up to £3.2 million in cash and shares
o Opening of Abingdon Analytical laboratory in Doncaster in December 2024
o Opening of US CDMO service site, including a commercial office and
laboratory, in Madison, Wisconsin, due to be fully operational by April 2025
· Integration of Compliance Solutions (Life Sciences) well underway and
recent contract wins, including one for >£500k
(https://www.londonstockexchange.com/news-article/ABDX/cs-lifesciences-ltd-contract-win/16842040)
, underpins significant growth potential in 2025 and beyond. This contract has
since been extended with anticipated revenue from the contract anticipated to
be >£1m over 2025 and into FY2026
· Continued growth of contract service activities with a number of key
projects contracted during H1 2025 which will impact in H2 2025 and beyond
including contract win
(https://www.londonstockexchange.com/news-article/ABDX/contract-win-sexually-transmitted-disease-tests/16814507)
for $2m for development of sexually transmitted disease tests over calendar
year 2025.
· Product revenue growth supported by expansion
(https://www.londonstockexchange.com/news-article/ABDX/salistick-tm-to-be-launched-in-germany/16942642)
(post-period-end) into Germany, Poland and Austria with distribution of
own-branded version of the saliva pregnancy test Salistick™
· Product development well underway with planned launch of sustainable
pregnancy and ovulation tests in US calendar Q1 of calendar year 2026
· Award of £800,000 (post-period-end) via UKRI alongside partners to
develop lateral flow tests (LFT) for malaria
(https://www.londonstockexchange.com/news-article/ABDX/funding-award-to-develop-test-for-malaria-parasite/16869616)
.
Financial Highlights
· Successful placing
(https://www.londonstockexchange.com/news-article/ABDX/result-of-placing/16586682)
and retail offer in August 2024 raising £5.2m net of expenses
· Revenue of £3.1m for H1 2025 (H1 2023: £2.4m) representing growth
rate of 28.4%:
§ Lateral Flow CDMO revenues accounted for £1.3m (H1 2024: £1.9m)
§ Regulatory accounted for £1.3m revenues (H1 2024: £0.3m) including a
four-month contribution from CS Lifesciences of £1.0m
§ Lateral Flow Products revenues accounted for the balance of £0.5m (H1
2024: £0.2m)
· H2 2025 will be a stronger revenue performance than H1 due to the
impact of a number of new contracts (outlined below); a full period
contribution from CS Lifesciences; and the typical "seasonality" of the Group
business
· Investment in growth initiatives following net £5.2m fundraising in
August 2024 meaning adjusted EBITDA loss of £1.9m. Second half of the year
will see an improved EBITDA performance due to forecast revenue growth
· Cash at bank and in hand of £3.7m (31 December 2023: £2.0m; 30 June
2024: £1.4m); following successful fundraising of £5.6m (£5.2m net of
expenses) completed in August 2024
· The Board is confident in meeting market expectations for revenue of
£8.6m for FY2025 and is targeting a cash-flow positive situation in calendar
year 2026 without the need for additional funding.
Board changes
· Appointment of Tom Hayes
(https://www.londonstockexchange.com/news-article/ABDX/directorate-change/16818994)
as CFO in January 2025.
· As outlined in a separate RNS released today:
o Dr Chris Hand will continue as Executive Chairman
o Chris Yates, CEO, will move to a new role, President, Abingdon Health USA
Inc. and Group Chief Commercial Officer. He will be a director of Abingdon
Health USA, Inc and stand down from the board of Abingdon Health plc with
immediate effect
o Dr Katie Brenner appointed as Non-Executive Director, effective from 1
April 2025
Chris Hand, Executive Chairman, at Abingdon Health plc, commented: "FY 2025
has started very positively for Abingdon as we continued our momentum in
executing key strategic milestones such as the acquisition of CS Lifesciences,
the opening of Abingdon Analytical in Doncaster, and the commencement of work
on our new US site in Madison which is set to be completed in April.
"Following some temporary headwinds during H1 2025, we were pleased to see
growing contract momentum towards the end of the period and into H2, including
a $2m contract developing sexually transmitted disease tests. Importantly,
that contract utilises each limb of our business, highlighting our ability to
provide an integrated, end-to-end solution for our global customer base.
"We believe we now have the foundations in place to build a sustainably
profitable company. We are continuing to progress towards achieving our key
goal of cashflow breakeven, which we expect to reach during calendar year
2026, without the need for further funding."
Enquiries
Abingdon Health plc www.abingdonhealth.com/investors/ (http://www.abingdonhealth.com/investors/)
Chris Hand, Executive Chairman Via Walbrook PR
Tom Hayes, CFO
Zeus Capital (Sole Broker and Nominated Adviser) Tel: +44 (0) 20 3829 5000
Antonio Bossi / Alexandra Campbell-Harris (Corporate Finance)
Fraser Marshall (Corporate Broking)
Walbrook PR (Media & Investor Relations) Tel: +44 (0)20 7933 8780 or abingdon@walbrookpr.com
(mailto:abingdon@walbrookpr.com)
Paul McManus / Alice Woodings Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654
Phillip Marriage +44 (0)7867 984 082
About Abingdon Health plc
Abingdon Health is a leading med-tech contract service provider offering its
services to an international customer base.
The Group's CDMO division (https://www.abingdonhealth.com/services/) offers
lateral flow 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's
CDMO division has the internal capabilities to take lateral flow projects, in
areas such as infectious disease and clinical testing, including companion
diagnostics, animal health and environmental testing, from initial concept
through to routine and large-scale manufacturing; from "idea to commercial
success".
Abingdon's regulatory services companies, Compliance Solutions (Life Sciences)
(https://cslifesciences.com) and IVDeology provide a broad range of regulatory
services to the in vitro diagnostic and wider medical device industry, to
support customers in bringing products to market across a range of territories
including the USA, EU and the UK. Our consultancy services range from design,
implementation and maintenance of quality management systems, preparation of
technical files for regulatory approvals, part-time and interim management
support, auditing both internally (e.g. Quality Management Systems) and
externally (e.g. critical suppliers), management reviews and presentations,
training and mentoring.
Abingdon Simply Test(TM) range of self-tests are marketed via an e-commerce
platform that offers a range of self-tests to empowers consumers to manage
their own health and wellbeing. The Abingdon Simply Test
(http://www.abingdonsimplytest.com) (TM) e-commerce 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 and other selected self-test products, such as the saliva pregnancy
test, Salistick (https://www.salignostics.com/salistick/) (TM
(https://www.salignostics.com/salistick/) ), 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 with
CDMO facilities in both York, UK and Madison, Wisconsin, USA. For more
information visit: www.abingdonhealth.com (http://www.abingdonhealth.com/)
BUSINESS REVIEW
Strategy
Abingdon Health's mission is to improve life by making innovative healthcare
products accessible to all. We seek to achieve this in three ways.
· By providing our customers with a comprehensive lateral flow contract
development and manufacturing service to bring their products to market in the
most efficient and cost-effective way
· Through the distribution of a range of lateral flow self-test
products, branded Abingdon Simply Test(TM), retailer own brand or (select)
private-label products
· Through the provision of a comprehensive in vitro diagnostic
(including lateral flow) and medical device/technology regulatory service to
speed up market access for our customers. We provide an overview of the recent
progress in each of our three service lines below.
Encouragingly, a number of Abingdon Health's customers are engaging with the
Group across more than one of our service lines, and this integrated service
proposition was strengthened by the acquisitions of regulatory service
providers CS Lifesciences in August 2024 and IVDeology in May 2024 as well as
the investment in the opening of Abingdon Analytical Ltd in December 2024.
These strategic developments allow Abingdon Health to provide "all the pieces
of the jigsaw" to enable customers to take an "idea through to commercial
success." The clear benefit for the customer is that they have one principal
service provider who is proactively co-ordinating the various work streams in
a cohesive and integrated manner to ensure the overall project is being driven
in a cost effective and time efficient way.
Lateral Flow CDMO services
(https://www.abingdonhealth.com/guides/lateral-flow-contract-service-partner/)
Abingdon Health provides its customers with an integrated lateral flow
Contract Research Organisation ("CRO") and Contract Development and
Manufacturing Organisation ("CDMO") service (collectively "CDMO"). Abingdon
Health's contract service programme covers feasibility, optimisation,
scale-up, technical transfer and manufacturing. In addition, we offer a range
of other complementary services such as packaging design and kitting,
regulatory advice including validation and verification, documentation for
regulatory submissions, and commercial support. The Group provides customers
with all the services required to take their project from idea to large-scale
manufacture, regulatory approval when required, and commercial success.
According to Precedence
(https://www.biospace.com/press-releases/lateral-flow-assay-market-size-to-reach-uss-24-39-bn-by-2033)
research the lateral flow market is expected to growth to $24.4 billion by
2033, with the US accounting for circa 40% of the market. Given the importance
of the US market, and also given recent political changes in the US, Abingdon
took a decision in 2024 to open a US CDMO site in Madison, Wisconsin, which
will be fully operational in April 2025. The focus of this site initially will
be on supporting customers with contract development services but it is
anticipated that Abingdon Health's US presence will expand over time to
include lateral flow manufacturing and kitting.
H1 2025 performance was impacted by a slowdown in market activity and decision
making. We see this as a temporary headwind and have been pleased to sign a
number of new contracts during H1 2025 and the early part of H2 2025 which
will have a positive impact on revenues in H2 2025 and into FY 2026. We
announced in January 2025 the award of approximately £800,000 as part of
total project funding of €5m to develop, and transfer to manufacture, a new
intervention for malaria elimination as part of a distinguished group of
Institut Pasteur (https://www.pasteur.fr/en) (and its affiliates in Madagascar
and Senegal), FIND (https://www.finddx.org/) , London School of Hygiene &
Tropical Medicine (https://www.lshtm.ac.uk/) (LSHTM) and Walter and Eliza Hall
Institute of Medical Research (https://www.wehi.edu.au/) (WEHI). The project
commenced in Q1 of calendar year 2025 and will be delivered over 24 months.
Other larger contract wins, which will run through calendar year 2025, include
a $2m contract with Find Out From Home, Inc. ("FOFH") for the continued
development and regulatory approval of lateral flow tests for four sexually
transmitted disease ("STD") tests.
Lateral Flow Self-Test Products
The Abingdon Simply Test™ and branded range of self-tests includes 16
products. H1 2025 revenues were £0.5m (H1 2024: £0.2m). The timing of orders
means that H2 2025 will see an improved revenue performance compared to H1
2025 with further Boots Salistick™, Vitamin D and Ferritin orders being
delivered coupled with the launch of an own-branded version of Salistick™ in
Germany and other territories. We were pleased to see recent coverage
(https://media.licdn.com/dms/image/v2/D4E22AQE9krER7rZn3g/feedshare-shrink_800/B4EZU8zAVmGYAg-/0/1740481759186?e=1744848000&v=beta&t=5Zaupxo_FdVPpLbtqJZourgpyXy1YqCWNkxJFWK_bjs)
of Boots' Vitamin D and Ferritin tests on ITV's This Morning show which
highlighted the usability and growing recognition of these self-tests.
As announced on 17 March 2025, Abingdon Health has extended its distribution
agreement with Salignostics to several key European markets, including the
German market on an exclusive basis. Abingdon Health, along with its
long-standing distribution partner NeutraPharma (https://neutrapharma.com/) ,
expects to launch an own-branded version Salistick™ with major German
retailers, including DM, Rossman and Mueller, in calendar year Q2 2025.
Abingdon Health has received an initial purchase order for 70,000 tests,
with further purchase orders anticipated during the calendar year 2025 on a
quarterly basis.
We see further opportunities for self-test expansion and continue to work with
our strategic partner Find Out From Home, on the regulatory approval of their
first four Sexually Transmitted Disease ("STD") self-tests and the development
of a further three STD tests.
We continue to work on the development of developing sustainable product
design solutions reducing the use of plastic for the lateral flow market. The
first products to market in this area are planned to be a sustainable
pregnancy and ovulation test which we are targeting for launch in the US
market by calendar Q1 2026. We are excited about the opportunity to bring
innovative solutions for the lateral flow market using this proprietary
technology.
In addition, the use of smartphone technology, such as Abingdon's patented AI
driven AppDx® (which will be available for commercial use in H2 FY2025),
further adds to the development of use cases for lateral flow technology.
Regulatory Services
Abingdon Health's regulatory service
(https://www.abingdonhealth.com/services/regulatory-support-clinical-analytical-services/)
provision covers both the diagnostics market (including lateral flow and the
wider medical device and medical technology market. Our regulatory services
division recorded H1 2025 revenues of £1.3m (H1 2024: £0.3m), including six
months' contribution from IVDeology (£0.2m) and four months' contribution
from CS Lifesciences (£1.0m).
We were delighted to acquire CS Lifesciences
(https://cslifesciences.com/wp-content/uploads/2025/01/25-01-22-CSLifesciences-Brochure-V2.pdf)
for a consideration of up to £3.2m in cash and shares in August 2024. The
acquisition comprised Compliance Solutions (Life Sciences) Ltd, CS
Lifesciences Europe Ltd and CS Lifesciences USA Inc. and employs 37 staff with
offices in Dublin, Glasgow and Florida. This deepens Abingdon Health's in
vitro diagnostic regulatory expertise and broadens our offering into the
medical device and medical technology markets. The Board has been pleased with
the progress since the acquisition, which was illustrated the announcement on
8 January 2025 of a contract worth over £500k with a major global diagnostics
company to work on quality management systems and regulatory approvals. The
contract commenced in March 2025 and will run for an initial 12 months. The
contract has since been expanded and is now anticipated to be worth over
double the initial estimates.
Our regulatory service proposition was further strengthened by the investment
in opening Abingdon Analytical Ltd in Doncaster in December 2024. The Group
has been providing analytical laboratory services since 2023 as part of its
strategy to offer a comprehensive CDMO service that supports its customers in
bringing products to market. The services of an analytical laboratory,
including product stability testing, specificity, sensitivity, assessment of
detection limits, interference, cross-reactivity testing, and method
comparisons, make a significant contribution to a product's regulatory
technical file, a key requirement for regulatory approval by FDA, EU IVDR,
UKCA and other regulatory authorities. The inclusion of analytical laboratory
services as part of our $2m contract with FOFH underlines the significant
benefit of having development, manufacturing, regulatory, clinical trial
support and performance evaluation "under one roof" within the Abingdon Health
group.
People
As at 31 December 2024, the Group's headcount was 113, compared with 85 at 1
July 2024. This followed the acquisition of CS Lifesciences in August 2024
which added 37 talented regulatory professionals to the Abingdon group.
The Board were delighted to appoint Tom Hayes as CFO in January 2025. Tom has
over 25 years' experience, particularly with AIM-listed companies, having
worked as Group Finance Director at Northern Bear plc and prior to this in
advisory roles; and Tom's role will be invaluable as the Group integrates its
recent acquisitions and continues to grow its revenues.
As announced in a separate RNS statement today, Chris Hand will continue as
Executive Chairman, having been appointed into the expanded role on 15 October
2024. Chris Yates will step down from the board with immediate effect and will
be appointed into a new role of President, Abingdon Health USA Inc. and Group
Chief Commercial Officer. Given the expanding nature of the Group's operations
the Board is pleased that Chris has agreed to focus his efforts on driving the
Group's revenues across all its different service lines.
We are also pleased to announce the strengthening of the Board today with the
planned appointment of a new Non-Executive Director. Dr Katie Brenner founded
bluDiagnostics, a company specialising in lateral flow testing with an
associated app to allow at home monitoring of female fertility using saliva
samples. She sold bluDiagnostics to Amazon in 2020 and remained there until
2024. Katie will be joining the Board from 1 April 2025.
Max Duckworth, an early investor and previous Board member (pre-IPO), sits as
a Board Observer.
Financial Performance
Revenues in H1 2025 were £3.1m (H1 2024: £2.4m) which represented a growth
rate of 28.4%. As with previous financial years, we expect revenues to be
weighted towards the second half of the financial year, and with a number of
customer agreements announced recently which will record revenue in H2 2025.
The gross profit margin for the period was 38.3% (H1 2024: 53.0%) primarily as
a result of our regulatory consultants, including those who joined as part of
the CS Lifesciences acquisition, being classified as part of cost of sales.
We note that CS Lifesciences operates with limited overheads and generated a
positive EBITDA contribution in the period.
Operating costs in H1 2025 were £3.2m (H1 2024: £2.7m) following the
significant investment in operations, including the opening of a new
analytical and performance evaluation laboratory in Doncaster, and a new
commercial office and laboratory in Madison, Wisconsin, USA.
Adjusted EBITDA loss was £1.9m in H1 2025 (£1.2m in H1 2024) as a result of
increased investment in the Group as detailed above.
The Company's cash balance at 31 December 2024 was £3.7m (30 June 2024:
£1.4m). The cash movement reflects both the investment in operations above
and payments of £1.2m made for the CS Lifesciences acquisition, offset by net
placing proceeds of £5.2m received in August 2024.
The earnings per share figure below includes in the denominator deferred
shares. Technically this is correct. However, it should be noted that the
deferred shares are non-voting shares, with no rights to dividends, but
holders of deferred shares are entitled to receive the nominal value of that
share (0.0025 pence sterling) once on a return of capital, a repurchase of
those shares by the Company or in connection with a sale of those shares. As
set out in note 3 below, the total nominal value of all the deferred shares is
£45k.
Current Trading and Outlook
Abingdon Health's comprehensive lateral flow CDMO service proposition has been
strengthened by the investment in Abingdon Analytical, the new US lateral flow
CDMO site and our two regulatory service acquisitions, CS Lifesciences and
IVDeology. Our service proposition leaves us uniquely placed to support the
needs of our customers and offer speed to market for their products.
The Board remains confident of achieving market revenue expectations of £8.6m
for FY 2025.
The Group's key focus remains on continued revenue growth, proactive cost
control, progression towards profitability and a cashflow positive position.
Our strategic initiatives have left us well placed to achieve this, and we
currently forecast to reach a cashflow positive position in 2026, without the
need for further financing.
Chris Hand
Executive Chairman
24 March 2025
Abingdon Health PLC
Consolidated Statement of Total Comprehensive Income
For the period ended 31 December 2024
Unaudited Unaudited Audited
Notes 6 months ended 6 months ended Year
31 December 2024 31 December 2023 ended
30 June
2024
£'000 £'000 £'000
Revenue 1 3,094 2,410 6,135
Cost of sales (1,910) (1,132) (2,456)
Gross profit 1,184 1,278 3,679
Administrative expenses (3,210) (2,728) (5,070)
Other income 128 281 259
Adjusted EBITDA (before adjusting items) (1,898) (1,169) (1,132)
Amortisation (52) (15) (27)
Depreciation (215) (270) (399)
Impairment reversals - 361 -
Share-based payment expenses (66) (10) (48)
Non-recurring legal, professional and fundraising fees (410) - (32)
Non-recurring redundancy costs and termination awards - (109) (108)
Gain on settlement - - 373
Operating loss (2,641) (1,212) (1,373)
Finance income 48 26 31
Finance costs (40) (34) (57)
Loss before taxation (2,633) (1,220) (1,399)
Taxation 112 15 128
Loss for the period (2,521) (1,205) (1,271)
Other comprehensive expenses for the period - - -
Total comprehensive loss for the period (2,521) (1,205) (1,271)
Attributable to:
Equity holders of the parent (2,521) (1,205) (1,271)
Basic losses per share (pence) 2 (0.71) (0.40) (0.42)
Diluted losses per share (pence) 2 (0.71) (0.40) (0.41)
All results are in respect of continuing activities.
Adjusted EBITDA defined as Earnings before interest, tax, depreciation,
amortisation and one-off costs as outlined above, is a non-GAAP measure used
by management and is not an IFRS disclosure.
Abingdon Health PLC
Consolidated Statement of Financial Position
As at 31 December 2024
Notes Unaudited Unaudited Audited
31 December 2024 31 December 2023 30 June
2024
£'000 £'000 £'000
ASSETS
Non-current assets
Investments in associates 13 15 13
Goodwill 2,281 - 379
Other intangible assets 550 76 153
Property, plant and equipment 798 977 997
3,642 1,068 1,542
Current assets
Inventories 444 411 441
Trade and other receivables 1,745 999 1,466
Income tax debtor 320 346 201
Cash and cash equivalents 3,671 1,998 1,440
6,180 3,754 3,548
Total assets 9,822 4,822 5,090
LIABILITIES
Current liabilities
Trade and other payables 2,304 2,000 1,704
Obligations under leases 123 97 120
2,427 2,097 1,824
Non-current liabilities
Borrowings 741 721 722
Obligations under leases 145 190 207
Provisions 88 - 88
974 911 1,017
Total liabilities 3,401 3,008 2,841
Net assets 6,421 1,814 2,249
EQUITY
Attributable to the owners of the parent:
Share capital 3 94 76 77
Share premium 37,417 30,309 30,808
Share based payment reserve 5 190 90 124
Accumulated losses (31,280) (28,661) (28,760)
Total equity 6,421 1,814 2,249
Abingdon Health PLC
Consolidated Statement of Changes in Equity
For the period ended 31 December 2024
Share Share Share based payment reserve Accumulated deficit Total equity attributable to owners of the parent
capital premium
£'000 £'000 £'000 £'000 £'000
At 30 June 2023 76 30,309 80 (27,456) 3,009
Loss for the period - - - (1,205) (1,205)
Total comprehensive loss for the period - - - (1,205) (1,205)
Share option expense - - 10 - 10
At 31 December 2023 76 30,309 90 (28,661) 1,814
Loss for the period - - - (103) (103)
Total comprehensive loss for the period - - - (103) (103)
Issue of shares 1 499 - - 500
Share option expense - - 22 - 22
Earn-out consideration classified as share-based payment - - 16 - 16
Share options cancelled - - (4) 4 -
At 30 June 2024 77 30,808 124 (28,760) 2,249
Loss for the period - - - (2,521) (2,521)
Total comprehensive loss for the period - - - (2,521) (2,521)
Issue of shares 17 6,609 - 6,626
Share option expense - - 67 - 67
Share options forfeited - - (1) 1 -
At 31 December 2024 94 37,417 190 (31,280) 6,421
Abingdon Health PLC
Consolidated Statement of Cash Flows
For the period ended 31 December 2024
Unaudited Unaudited Audited Year ended
6 months 6 months 30 June
ended ended 2024
31 December 2024 31 December 2023
£'000 £'000 £'000
Cash flow from operating activities
Loss for the period (2,521) (1,205) (1,271)
Adjustment for:
Other income (128) (281) (255)
Net finance (income)/costs (8) 9 26
Tax credit (112) (15) (128)
Amortisation and impairment of intangible assets 52 15 27
Share-based payment expenses 66 10 48
Depreciation and impairment of property, plant and equipment 215 270 399
Loss on sale of property, plant and equipment and intangible assets - - 33
Impairment reversal - (361) -
Changes in working capital:
(Increase) in inventories (4) (83) (112)
Decrease/(increase) in trade and other receivables 349 149 (297)
(Decrease)/increase in trade and other payables (91) 327 (335)
Cash used in operations (2,182) (1,165) (1,865)
Interest paid (including leases) (12) (34) (25)
Income taxes received - - 231
Net cash outflow from operating activities (2,194) (1,199) (1,659)
Cash flow from investing activities
Interest received 48 26 31
Purchase of intangible assets (2) (4) (6)
Purchase of property, plant and equipment (6) (18) (35)
Acquisition of subsidiary, net of cash acquired (1,181) - -
Acquisition of other investments - - (13)
Net cash flow from investing activities (1,141) 4 (23)
Cash flow from financing activities
Proceeds from issue of share capital 5,625 - -
Payment of lease obligations (59) (43) (114)
Net cash flow from financing activities 5,566 (43) (114)
Net increase/(decrease) in cash and cash equivalents 2,231 (1,238) (1,796)
Cash and cash equivalents at beginning of the period 1,440 3,236 3,236
Cash and cash equivalents at end of period 3,671 1,998 1,440
Abingdon Health PLC
Notes to the Interim Financial Statements
For the period ended 31 December 2024
Company information
Abingdon Health PLC ("the Company") is a public limited company domiciled and
incorporated in England and Wales. The Company is quoted on the London Stock
Exchange's Alternative Investment Market ("AIM"). The registered office is
York Biotech Campus, Sand Hutton, York, YO41 1LZ.
The consolidated financial information (or "interim financial statements")
incorporates the financial information of the Company and entities (its
subsidiaries) controlled by the Company (collectively comprising the
"Group").
The principal activity of the Group is to develop, manufacture and distribute
diagnostic devices and provide consultancy services to businesses in the
diagnostics sector.
Basis of preparation
These interim consolidated financial statements have been prepared using
accounting policies based on International Financial Reporting Standards (IFRS
and IFRIC Interpretations) issued by the International Accounting Standards
Board ("IASB") as adopted for use in the UK, insofar as these apply to interim
financial statements.
The financial information set out in these interim consolidated financial
statements for the six months ended 31 December 2024 is unaudited. The
financial information presented is not statutory accounts prepared in
accordance with the Companies Act 2006, is prepared only to comply with AIM
requirements for interim reporting, and should be read in conjunction with the
30 June 2024 Annual Report and Financial Statements. The financial
information for the half years ended 31 December 2024 and 31 December 2023
does not constitute statutory accounts within the meaning of Section 434 (3)
of the Companies Act 2006 and both periods are unaudited. The financial
information has not been prepared (and is not required to be prepared) in
accordance with IAS 34 Interim Financial Reporting.
The Group's annual report and financial statements for the year ended 30 June
2024 have been filed with the Registrar of Companies. The independent
auditor's report on the annual report and financial statements for the year
ended 30 June 2024 was i) unqualified, ii) did not draw attention to any
matters by way of emphasis, and iii) did not contain a statement under 498(2)
- (3) of the Companies Act 2006.
Significant accounting policies
The Group has presented below key extracts of its accounting policies.
The Group has applied the same accounting policies and methods of computation
in its interim consolidated financial statements as in its 2024 annual
financial statements except for those that relate to new standards and
interpretations effective for the first time for periods beginning on (or
after) 1 July 2024, and will be adopted in the 2025 financial statements.
Adoption of these new standards and interpretations is not expected to have a
material impact on the Group's financial statements.
The accounting policies applied are based on the recognition and measurement
principles of IFRS in issue as adopted by the UK and are effective at 30 June
2025 or are expected to be adopted and effective at 30 June 2025.
Basis of measurement
The interim financial statements have been prepared on the historical cost
basis, modified to include the revaluation of certain financial instruments at
fair value.
Use of estimates and judgements
The preparation of the interim financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets and liabilities,
income, and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Going concern
As at 31 December 2024, the Group has net current assets. The Group has a
number of CRO and CDMO service contracts in place which generate revenues and
are expected to continue doing so. The Group also has significant unused cash
reserves available which are expected to provide an operating headroom for a
period of at least 12 months.
The Group continues to focus on increasing the number of CRO and CDMO
customers and supporting those customers in bringing their products to market,
thereby securing additional revenues for the Group.
Basis of consolidation
The Group financial information consolidates those of the Company and the
subsidiaries that the Company has control of. Control is established when the
Company is exposed, or has rights, to variable returns from its involvement
with the subsidiary and has the ability to affect those returns through its
power over the subsidiary.
Electronic communications
The Company is not proposing to bulk print and distribute hard copies of this
Interim Report for the six months ended 31 December 2024 unless specifically
requested by individual shareholders. The Board believes that by utilising
electronic communication it delivers savings to the Company in terms of
administration, printing and postage, and environmental benefits through
reduced consumption of paper and inks, as well as speeding up the provision of
information to shareholders.
News updates, Regulatory News and Financial statements can be viewed and
downloaded from the Group's website, www.abingdonhealth.com/investors. Copies
can also be requested from: Company Secretary, Abingdon Health PLC, York
Biotech Campus, Sand Hutton, York, YO41 1LZ.
Share-based payment
The fair value of equity-settled share-based payments to employees is
determined at the date of grant and is expensed on a straight-line basis over
the vesting period based on the Group's estimate of shares or options that
will eventually vest.
Investments in Associates
An associate is an entity, being neither a subsidiary nor a joint venture, in
which the company holds a long-term interest and where the company has
significant influence. The company considers that it has significant influence
where it has the power to participate in the financial and operating decisions
of the associate.
1. Revenue
The Group applies IFRS 15 'Revenue from contracts with customers'. Under IFRS
15, the Group applies the 5-step method to identify contracts with its
customers, determine performance obligations arising under those contracts,
set an expected transaction price, allocate that price to the performance
obligations, and then recognises revenues as and when those obligations are
satisfied.
Segmental analysis of revenue
Unaudited Unaudited Audited
6 months to 6 months to 12 months to 30 June
31 December 2024 31 December 2023 2024
£'000 £'000 £'000
Product sales 532 174 650
Contract development and manufacturing 1,301 1,949 4,585
Regulatory 1,261 287 900
Total revenue from contracts with customers 3,094 2,410 6,135
Revenue analysed by geographical market
Unaudited Unaudited Audited
6 months to 31 December 2024 6 months to 31 December 2023 12 months to 30 June
2024
£'000 £'000 £'000
United Kingdom 1,895 1,317 2,538
Europe 670 475 1,235
USA & Canada 487 480 2,039
Rest of the World 42 138 323
3,094 2,410 6,135
2. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
Unaudited 31 December 2024 Unaudited 31 December 2023 Audited
30 June 2024
Earnings used in calculation (£'000s) (2,521) (1,205) (1,271)
Number of shares 354,640,402 304,033,634 304,732,264
Basic EPS (p) (0.71) (0.40) (0.42)
Number of dilutable shares 357,433,903 306,667,725 308,201,227
Diluted EPS (p) (0.71) (0.40) (0.41)
The directors have presented adjusted earnings as a measure of ongoing
profitability and performance, and before deduction of share-based payment
costs and listing costs. The calculated adjusted earnings for the current
period of accounts is as follows:
Adjusted Earnings per Share Unaudited Unaudited Audited
6 months ended 6 months ended Year
31 December 2024 31 December 2023 ended
30 June 2024
£'000s £'000s £'000s
Loss before taxation (2,633) (1,220) (1,399)
Adjusted for:
Share-based payment 66 10 48
Impairment reversal - (361) -
Non-recurring legal and fundraising fees 410 - 32
Non-recurring employee redundancy costs - 109 108
- - -
Depreciation and amortisation 267 285 426
Net finance cost / (income) (8) 8 (26)
Adjusted Earnings (1,898) (1,169) (1,132)
Unaudited Unaudited Audited
6 months ended 6 months ended Year
31 December 2024 31 December 2023 ended
30 June 2024
Adjusted earnings (£000s) (1,898) (1,169) (1,132)
Number of shares 354,640,402 304,033,634 304,732,264
Adjusted EPS (p) (0.53) (0.38) (0.37)
Number of dilutable shares 357,433,903 306,667,725 308,201,227
Adjusted diluted EPS (p) (0.53) (0.38) (0.37)
3. Share capital
Unaudited 31 December 2024 Unaudited Audited
31 December 2023 30 June
2024
Ordinary share capital
Authorised Number Number Number
Ordinary shares of 0.025p each 193,630,821 121,716,822 126,716,822
Deferred ordinary shares of 0.025p each 182,316,812 182,316,812 182,316,812
375,947,633 304,033,634 309,033,634
Allotted and fully paid Number Number Number
Ordinary shares of 0.025p each 193,630,821 121,716,822 126,716,822
Deferred ordinary shares of 0.025p each 182,316,812 182,316,812 182,316,812
375,947,633 304,033,634 309,033,634
£'000 £'000 £'000
Ordinary shares of 0.025p each 49 31 32
Deferred ordinary shares of 0.025p each 45 45 45
94 76 77
Reconciliation of movements during the periods:
Ordinary Deferred Ordinary
Number Number
At 1 January 2024 121,716,822 182,316,812
Issue of new shares 5,000,000 -
At 30 June 2024 126,716,822 182,316,812
Issue of new shares 66,913,999 -
At 31 December 2024 193,630,821 182,316,812
4. Acquisition of a business
On 15 August 2024, the group acquired 100% percent of the issued capital of
the Compliance Solutions (Life Sciences) Limited Group. The total
consideration recognised for the acquisition was £2,700k. The breakdown of
the consideration is as follows:
Consideration element Fair value
£'000
Initial cash consideration 700
Deferred consideration 1,000
Share consideration 1,000
Total 2,700
As at 31 December 2024, £660k of deferred consideration has been paid. The
remaining £340k of deferred consideration is due to be paid subject to
receipt of certain aged debtor balances post-completion. Earn-out equity
consideration was valued at £nil as at the acquisition date.
The net assets of the business acquired are as follows:
Group Book value Adjustments Fair value
£'000 £'000 £'000
Property, plant and equipment 6 - 6
Intangible Assets - 446 446
Trade and other Receivables 727 - 727
Cash and Cash equivalents 179 - 179
Trade and other payables (448) - (448)
Deferred tax - (112) (112)
Total identifiable net assets 464 334 798
Goodwill - - 1,902
Total consideration 2,700
5. Share options
The following movements on share options have been recognised in the period:
Number of share options Weighted average exercise price
Unaudited Unaudited 31 December 2023 Audited 30 Unaudited 31 December 2024 Unaudited Audited
31 December 2024 June 31 December 2023 30
2024 June 2024
Number Number Number £ £ £
Outstanding at start of period 5,714,994 4,247,210 4,247,210 0.0463 0.0818 0.0773
Exercised - - - - - 0.00
Issued - 2,386,238 2,386,238 - 0.00 0.0697
Forfeited - (914,286) (918,454) - 0.0698 -
Lapsed (6,250) (2,084) - 0.00025 - -
Outstanding at end of period 5,708,744 5,717,078 5,714,994 0.0463 0.0462 0.0463
Exercisable at end of period 117,507 68,752 123,757 0.1992 0.00 0.3230
The options outstanding at 31 December 2024 had an exercise price ranging from
£0.00 to £0.70 and a remaining contractual life of up to 9 years. The
options exist at 31 December 2024 across the following share option schemes:
Number of shares Exercise price per share (£) Vesting period
Options issued in April 2021 60,418 0.00025 1 year
SAYE scheme commenced in March 2021 57,089 0.70 3 years
Options issued in December 2022 3,204,999 0.07 3 years
Options issued in October 2023 2,386,238 0.00 3 years
5,708,744
The fair value of the scheme represents the reduced fair value after adjusting
for leavers and is being expensed over the vesting period.
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