REG - AOTI, Inc. - Trading Update for the year ended 31 December 2024

AotiAnnouncement

12/02/2025 07:00

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RNS Number : 7551W  AOTI, Inc.  12 February 2025

12 February 2025

 

 

AOTI, INC. (the "Company" or "Group" or "AOTI")

 

Trading Update for the year ended 31 December 2024

 

 

AOTI, INC. (AIM: AOTI), a medical technology group focussed on the durable
healing of wounds and the prevention of amputations through its unique
intermittent Topical Wound Oxygen (TWO(2)) and Negative Pressure Wound (NEXA)
therapies, is pleased to announce its unaudited trading update for the
financial year ended 31 December 2024.

 

Group revenue for 2024 is expected to be in excess of $58.1m (2023: $43.9m),
representing growth of over 32%, compared to a growth of 31% for the prior
year. Growth outside the Veterans Affairs (VA) sector has helped to diversify
sales mix such that the VA, whilst continuing to grow, accounted for less than
60% (2023: 72%) of Group revenues. This will contribute to margin improvements
in the medium to long term.

 

During the year, we accelerated investment in new market channels to allow us
earlier than planned access to these large and higher margin segments outside
of the VA sector. In addition to managed Medicaid, this now includes workers'
compensation, long term care and skilled nursing facility sectors. These
investments included an escalation of key opinion leader evaluations and the
addition of sector-specific market access expertise. This increased capability
will also enable us to better convey to payers the value-based proposition and
total cost of care savings that TWO(2) therapy delivers. Opening these
expanded sales channels is expected to contribute strongly to sustaining our
high levels of growth in 2025 and beyond.

 

As the VA broadly pays upon provision of service and other sectors pay on
traditional commercial terms, this has resulted in an increase in our
receivables during 2024. We therefore expect to increase our non-cash
accounting provision based on the FASB CECL methodology(1). Taking this into
account as well as our investments in new market segments, the Group's
Adjusted EBITDA(2) margin for 2024 is expected to increase to approximately
13.8%, compared with 3.9% for the prior year.

 

The Board remains confident of the Group's prospects and continuing to achieve
greater than 30% revenue growth in 2025 and the medium term.

 

The Company will report its audited preliminary results for the twelve months
ending 31 December 2024 on 28 April 2025.

 

Dr. Mike Griffiths, Chief Executive Officer and President of AOTI, INC.,
commented: "Our investment in expansion into a broader range of channels
reflects the growing awareness of the burden of chronic disease and the need
for effective treatments that also reduce costs. TWO(2) therapy continues to
demonstrate that it provides significant, clinically proven patient outcomes
and cost reductions for payers by healing wounds more durably, increasing the
body of evidence in support of its further adoption. In the US, chronic
disease consumes 90% of all healthcare spending, with heightened attention
being paid to reducing this growing burden. As market leader in this new, high
growth sector, AOTI is uniquely positioned to reduce the total cost of care
for this patient population."

 

1. Current Expected Credit Losses (CECL) methodology as required by the
Financial Accounting Standards Board (FASB), Accounting Standards Update No.
2016-13 Financial Instruments - Credit Losses (topic 326)

2. Adjusted EBITDA is an unaudited non-GAAP measure: Earnings before interest,
taxation, depreciation, amortisation and non-underlying items

 

END

 

 

 AOTI, INC.                                    +44 (0)20 3727 1000

 Dr. Mike Griffiths, Chief Executive Officer   ir@aotinc.net (mailto:ir@aotinc.net)

 Jayesh Pankhania, Chief Financial Officer

 Peel Hunt LLP (Nominated Adviser and Broker)

 Dr. Christopher Golden, Patrick Birkholm      +44 (0)20 7418 8900

 FTI Consulting (Financial PR & IR)

 Ben Atwell, Simon Conway,                     +44 (0)20 3727 1000

 Natalie Garland-Collins, Alex Davis           AOTI@fticonsulting.com (mailto:AOTI@fticonsulting.com)

 

 

ABOUT AOTI, INC.

 

AOTI, INC. was founded in 2006 and is based in Oceanside, California, US and
Galway, Ireland, providing innovative solutions to resolve severe and chronic
wounds worldwide. Its products reduce healthcare costs and improve the quality
of life for patients with these debilitating conditions. The Company's
patented non-invasive Topical Wound Oxygen (TWO(2)(®)) therapy has
demonstrated in differentiating, robust, double-blinded randomised controlled
trials (RCT) and real-world evidence (RWE) studies to more-durably reduce the
recurrence of Diabetic Foot Ulcers (DFUs), resulting in an unprecedented 88
per cent reduction in hospitalisations and 71 per cent reduction in
amputations over 12 months. TWO(2)(®) therapy can be administered by the
patient at home, improving access to care and enhancing treatment compliance.
TWO(2)(®) therapy has received regulatory clearance from the US (FDA), Europe
(CE Mark), UK (MHRA), Health Canada, the Chinese National Medical Products
Administration, Australia (TGA) and in Saudi Arabia. Also see www.aotinc.net
(http://www.aotinc.net)

 

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