REG - Abingdon Health PLC - Trading Update

Abingdon HealthAnnouncement

09/07/2024 07:00

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RNS Number : 5605V  Abingdon Health PLC  09 July 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Abingdon Health plc

("Abingdon Health" or "the Company")

 

Trading Update

 

Annual Revenue Growth of 52%

Cashflow Positive in Q4

Board anticipates continued solid revenue growth in FY 2025

 

 

York, U.K. 9 July 2024: Abingdon Health plc (AIM: ABDX, 'Abingdon', 'the
Company'), a leading international lateral flow contract development and
manufacturing organisation (CDMO), provides its trading update for the
twelve-months-ended 30 June 2024.

 

Highlights

 

·    Strong commercial progress across the Group. FY 2024 unaudited
revenues will be circa £6.1m, 52% ahead of FY 2023. Excluding the revenue
impact of the IVDeology acquisition, revenues will be circa £6.0m, 49% ahead
of FY 2023.

 

·    H2 FY 2024 showed revenue growth of 55% compared to H1 FY 2024 and
27% compared to H2 FY 2023.

 

·    Cash balance of £1.3m at 30 June 2024 (31 December 2023: £2.0m)
with Q4 2024 being cashflow positive.

 

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

 

·    Good progress in Abingdon Products division in H2 2024 including
launch of 3 Boots own-label tests: Vitamin D, Iron (Ferritin) and Saliva
Pregnancy.

 

·    Acquisition of regulatory consultancy IVDeology for share
consideration in May 2024 to strengthen Abingdon's regulatory service
capabilities.

 

·    The Board anticipates continued strong revenue growth in FY 2025 and
will provide further detail as we progress through the financial year.

 

 

Contract services

The Company's CDMO business has seen good revenue traction year-on-year with
revenue of £5.5m in FY 2024, circa 51% ahead of FY 2023 (£3.6m). 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. It is particularly pleasing to provide
customers with an end-to-end service across a range of activities including
contract development, technical transfer and scale-up, and commercial
support.  Abingdon's regulatory expertise is providing additional services to
customers in the increasingly complex area of regulatory approval with, for
example, EU in vitro diagnostics regulation (IVDR), US FDA approval,
UK-Conformity Assessment (UK-CA).

 

The Board was pleased to support its CDMO customer, Salignostics Ltd, in
securing retail distribution opportunities in the UK, including at Boots,
where their innovative saliva-based pregnancy test is being rolled out across
1,300 Boots stores nationwide and online at boots.com.

 

A number of customers' products were transferred into manufacturing during the
year, including Salignostics, LoopDx (sepsis, point-of-care test) and Up Front
Diagnostics (stroke, point-of-care test); and the Company looks forward to
supporting them, and our existing manufacturing customers, going forward as
these innovative products achieve further regulatory approvals and market
penetration.

 

The Company strengthened its regulatory service capabilities in May 2024 with
the acquisition, for up to £700,000, of IVDeology. IVDeology's service
capabilities include Quality Management System build, technical file build,
auditing and regulatory filing support (FDA, IVDR, CE-marking and
UKCA-marking). The acquisition is complementary to Abingdon's existing
regulatory service capabilities and provides the Company with strength in
depth to support its customers in a regulatory environment undergoing
significant change.

 

Abingdon Products

Abingdon Products achieved revenue of £0.7m in FY 2024, up 56% compared to
£0.4m in FY2023. As anticipated at the time of the interim accounts for the
six months ended 31 December 2023, the second half saw a stronger performance
with revenues in H2 FY 2024 176% ahead of H1 FY 2024. The main driver was the
launch in H2 FY 2024 of three lateral flow self-tests under Boots' own-label,
Vitamin D, Iron (Ferritin) and Saliva Pregnancy.

 

The Company continues to focus on further opportunities, both in the UK and
Europe, to promote own-label solutions to major retailers. In addition, the
Abingdon Simply Test® range of self-test products, launched online in July
2022, continues to build and the Company's product range now consist of 16
self-tests. The Company will continue to explore opportunities to build routes
to market in the UK, Ireland and Europe.

 

Financial update

Unaudited revenues for FY 2024 were £6.1m (FY2023: £4.0m) and revenues in
the second half of the financial year were 55% ahead of H1 FY 2024.  Cash as
of 30 June 2024 was £1.3m (31 December 2023: £2.0m).

 

Cash-burn reduced in H2 2024 compared to H1 2024; and in Q4 2024 cash flow was
positive.

 

The Board anticipates that continued solid revenue growth in FY 2025, along
with close management of the Group's operational cost base, will further drive
operational profitability improvements.

 

 

Chris Yates, CEO of Abingdon Health plc, commented:

 

"We are pleased to report another year of growing revenue performance with FY
2024 revenues 52% ahead of FY 2023. We were particularly pleased to achieve
positive cashflow in Q4 2024. Our key focus is to build a focused, high
quality, sustainable, profitable business and we are making great strides
towards this.  We believe with our lateral flow focus, our comprehensive CDMO
service proposition and growing self-test distribution platform that we are
well placed to deliver further revenue growth in FY 2025 and beyond".

 

Enquiries

 

 Abingdon Health plc                                     www.abingdonhealth.com/investors/ (http://www.abingdonhealth.com/investors/)
 Chris Yates, Chief Executive Officer
 Chris Hand, Non-Executive Chairman

 WH Ireland Limited (Sole Broker and Nominated Adviser)    Tel: +44 (0) 20 7220 1666
 Chris Fielding / Isaac Hooper (Corporate Finance)
 Fraser Marshall (Corporate Broking)

 

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Chris Yates, Chief Executive Officer of the Company.

 

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 and clinical testing, including companion
diagnostics, animal health and environmental testing. Faster access to results
allows for rapid decision making and targeted intervention; and can support
better outcomes.

 

Abingdon Health's Abingdon Simply Test® range of self-tests is 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) ® 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 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/)

 

 

 

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