REG - Abingdon Health PLC - Trading Update

Abingdon HealthAnnouncement

06/07/2023 07:00

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RNS Number : 1170F  Abingdon Health PLC  06 July 2023

 

 

Abingdon Health plc

("Abingdon Health" or "the Company")

 

Trading update

 

York, U.K. 06 July 2023: Abingdon Health plc (AIM: ABDX), a leading
international lateral flow contract development and manufacturing organisation
(CDMO), provides a trading update for the year ended 30 June 2023 ("FY23").

 

Highlights

 

·    Strong commercial progress across the Company. FY23 revenues expected
to be circa £4.0m, 42% higher than FY22 (£2.8m).

·    Excluding COVID-19 revenues, FY23 revenue expected to be 125% higher
than FY22, underlining the strong transition to a sustainable CDMO business
model.

·    Revenue for H2, at £2.9m, expected to be more than 2.5x that of H1
(£1.1m), with the increase coming from several new projects commencing from
late H1 2023.

·    Strong revenue traction from a diverse range of customers across all
aspects of our fully integrated CDMO solution, including contract development,
technical transfer, manufacturing, regulatory, quality assurance and
commercial support.

·    Good progress in growing the Abingdon Simply Test™ range, including
the launch in June 2023 of Salistick™, the first ever saliva pregnancy test.

·    Cash burn has reduced significantly in H2 2023 compared with H1 2023
due to the combined impact of revenue growth and the operational restructuring
undertaken in H1 that reduced overhead costs.

·    At 30 June 2023, the Company had circa £3.2m cash (31 December 2022
£ 4.4m), in-line with the Board's expectations.

 

Contract services

The Company has seen strong revenue growth year-on-year, particularly in H2
2023 as a number of new projects commenced. All commercial opportunities
currently are in non-COVID-19 areas and the business has successfully
transitioned into what the Directors believe to be a more sustainable
long-term business model.  Abingdon's CDMO proposition is resonating well
with customers across a range of sectors, including self-test and
point-of-care clinical testing, animal health, plant health and environmental
testing. 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. Management
anticipates further growth in FY24 and will continue to look at opportunities
to extend its contract services to support its customers in bringing products
through development, regulatory approval, manufacturing, and ultimately
commercial success.

 

Abingdon Simply Test™

The Abingdon Simply Test™ range of self-test products was launched online in
July 2022. The product range now consists of 17 self-tests with plans to
expand to over 20 tests in FY24. Abingdon continues to build on its route to
market in the UK, Ireland and continental Europe. The Company also launched
Salistick™, which was co-branded Abingdon Simply Test™, in the UK and
Ireland in June 2023, via Abingdon Simply Test
(https://www.abingdonsimplytest.com/) ™, Amazon and with Superdrug across
over 400 stores in the UK and online at Superdrug.com (https://superdrug.com/)
. This is the first example of Abingdon's integrated approach, with the
Company's CDMO team supporting Salignostics in the scale-up and manufacturing
of Salistick™, and then using its established distribution channels for
self-tests. Management anticipates further opportunities to bring CDMO
customer products through the Company's distribution channels in FY24 and
beyond, providing contract service customers with another 'added-value'
service.

 

Outlook

The Board believes the Company will deliver further strong revenue growth in
FY24. The Company's opportunity pipeline is robust and Abingdon's lateral flow
CDMO proposition will continue to yield further contract service opportunities
over the remainder of 2023 and beyond. The Board remains confident that the
Company has the financial resources in place today to deliver its strategic
plan.

 

Chris Yates, CEO of Abingdon Health plc, commented: "We are pleased to report
solid revenue performance in FY23, where we expect that excluding COVID-19,
our FY23 revenues have grown by 125% relative to FY22, underlining the
successful transition of our business to a CDMO model focused on the lateral
flow market. We believe that with our lateral flow focus, CDMO service
proposition and distribution platform, we are well placed to deliver further
revenue growth in FY24 and beyond. Our focus remains on organic revenue
growth, the continued reduction in cash burn towards a breakeven position and
profitability, and we believe we have the financial resources in place today
to achieve this."

 

 

 

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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