REG - Abingdon Health PLC - Trading Update

Abingdon HealthAnnouncement

28/02/2023 07:01

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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 £1.1m for the 6 months to December 2022 (H1 2021: £1.7m)
expected to be significantly improved in H2 2023 and FY 2023 revenues are
expected to be materially higher than FY 2022 revenues of £2.8m.

·    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 £4.4m 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 £1.1m (H1 2021/2: £1.7m). 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 £4.4m 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 £2.8m. 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/ (http://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 Nominated Adviser)       Tel: +44 (0)20 7496 3000
 Peter Steel, Alex Bond (Corporate Finance)
 Tom Salvesen (Corporate Broking)

 Walbrook PR Limited              Tel: +44 (0)20 7933 8780 or abingdon@walbrookpr.com
                                  (mailto:abingdon@walbrookpr.com)
 Paul McManus / Phillip Marriage  Mob: +44 (0)7980 541 893 / +44 (0)7867 984 082

 Alice Woodings                   +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
(http://www.abingdonsimplytest.com) 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
(http://www.abingdonhealth.com/)

 

 

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. Upon the publication of
this announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.

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