REG - Cambridge Nutrition. - Trading Update and Directorate Change

Cambridge Nutritional SciencesAnnouncement

22/04/2024 08:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240422:nRSV4898La&default-theme=true

RNS Number : 4898L  Cambridge Nutritional Sciences PLC  22 April 2024

CAMBRIDGE NUTRITIONAL SCIENCES PLC

("CNS" or the "Company" or the "Group")

 

Trading update

 

CNS (AIM: CNSL), the specialist medical diagnostics company focused on
promoting a personalised and functional approach to health and nutrition, is
pleased to announce an update on the Group's trading for the year ended 31
March 2024, ahead of the release of its audited final results in July 2024

 

Highlights:

·    Revenue expected to be £9.8m (2023: £7.5m) representing 30% growth.

·    Gross profit margin of c.62% (2023: 47%)

·    Gross profit to exceed £6.0m (2023: £3.5m) representing c.70%
growth.

·    Adjusted EBITDA(1) expected to be positive (2023: loss of £2.0m).

·    Free cash flow positive (2023: negative) with a net cash balance of
£5.4m (2023: £5.1m).

 

(1)Adjusted for exceptional items and share based payment charges.

 

2024 Financial performance:

 

The Group expects to report revenue growth for the year ending 31 March 2024
ahead of current market expectations and is on track to meet all its KPI
market expectations for the full year.

Gross profit margin of c.62% (2023: 47%) has increased significantly with
yields maintained following continued investment in production and operational
improvements.

Improvement work on product yield that was started in April 2023 has
contributed to a favourable gross profit with scrap costs falling 27% from
FY23 to FY24.

Adjusted EBITDA(1) expected to be positive (2023: restated loss £2.0m)

 

Outlook:

 

The new financial year has started well with good momentum going into the
first quarter with a healthy order book. In FY25 we will see a more targeted
sales focus on our markets and extending on the good growth made in the UK
FY24.

Another key market for us is India, where we are developing digital
technologies to increase awareness and drive demand from end users and
healthcare practitioners.

Building on the investment in continuous improvement, further yield
improvements have been identified and are being implemented in production
while we are continuing to address efficiencies and increase capacity within
CNS lab.

 

Jag Grewal, CEO, commented that: "I am delighted with our performance in 2024.
We have delivered a very strong set of results while at the same time laying a
solid foundation for the future in what is an increasingly important market of
gut health diagnostics. We have strengthened both our operational performance
and our organisation. I would like to acknowledge the hard work and commitment
of the Cambridge Nutritional Sciences team who have been pivotal in delivering
a strong performance in 2024. We look forward to an exciting 2025."

 

 

 

Directorate Change

Dr Simon Douglas, Chair of the Company, notified the Board that due to time
commitments he wishes to step down from his position as Non-Executive Chair.
The Company is pleased to announce that Carolyn Rand, currently independent
Non-Executive Director will serve as Chair effectively immediately. Simon
served on the board for three years and during that time, oversaw the
rebranding to Cambridge Nutritional Sciences Group, PLC and the successful
sale of both the Alva site and the CD4 Business including moving the head
office from Alva in Scotland to Cambridgeshire. The disposals were key in
refocusing the business on food sensitivity testing and ensuring it has
sufficient resources to drive CNSL forward.

 

Cally Rand, said: "The Board would like to thank Simon for all his efforts
over the last three years as Chair to refocus the business on food sensitivity
testing, and for handing over a business that is now positioned for further
growth in an exciting market."

 

Contacts:

 Cambridge Nutritional Sciences PLC                                         www.cnsplc.com (http://www.cnsplc.com)
 Jag Grewal, Chief Executive

 Cavendish Capital Markets Limited                                          Tel: 020 7220 0500
 Geoff Nash / Edward Whiley / George Dollemore (Corporate Finance)
 Nigel Birks / Harriet Ward (ECM)

 Walbrook PR Limited                                                        Tel: 020 7933 8780 or omega@walbrookpr.com
 Paul McManus / Charlotte Edgar                                             Mob: 07980 541 893 / Mob: 07884 664 686/
 Sam Allen                                                                  Mob: 07502 558 258

About Cambridge Nutritional Sciences plc

Cambridge Nutritional Sciences plc (AIM: CNSL) is a specialist medical
diagnostics company focused on industry-leading Health and Nutrition products.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTZZGZDNZGGDZG