REG - Diaceutics PLC - Final Results
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RNS Number : 5747F Diaceutics PLC 26 May 2026
Diaceutics FY 2025 Results
Revenue growth of 24% on a constant currency basis to £38.4 million in FY
2025
Adjusted EBITDA* growth of 80% to £7.6 million and return to profitability
Record order book of £38.9 million and ARR** of £20.0 million at 31 December
2025 provides good visibility for continued growth in 2026
12% growth in number of customer therapeutic brands working with to 95
Two additional top 10 global pharma confirmed as enterprise-wide engagement
customers
Second PMx commercialization partnership signed in Q4 with an innovative US
Biotech
AI further enhances and automates data processing - accelerating insight
generation for our customers
Strong finish to 2025 - Q1 2026 performed in line with the Board's
expectations
New York, Belfast and London, 26 May 2026 - Diaceutics PLC
(https://www.diaceutics.com/) (AIM: DXRX), a leading technology and solutions
provider to the pharma and biotech industry, today announces the continued
strong performance across its business for the year ended 31 December 2025.
Ryan Keeling, Diaceutics' Chief Executive Officer, commented: "2025 marked
a significant milestone for Diaceutics. Against a backdrop of heightened
budget discipline across pharma and biotech, we delivered strong revenue
growth, returned the business to profitability, and continued to scale our
platform globally. Momentum improved through Q4, resulting in a strong finish
to the year, and trading year-to-date has remained positive, with Q1 2026
performing in line with the Board's expectations. This performance is
testament to the resilience of our platform model and the growing importance
of diagnostic intelligence in helping customers identify patients, improve
therapy adoption and deliver measurable commercial impact".
Financial Highlights:
● Revenue growth of 20% in 2025 to £38.4 million (FY 2024: £32.2 million) and
return to profitability with reported profit before tax of £0.3 million (FY
2024: loss £1.9 million)
● 24% growth in revenue on a constant currency basis
● 80% growth in Adjusted EBITDA* to £7.6 million (FY 2024: £4.2 million)
● Annual Recurring Revenue (ARR)** of £20.0m at 31 December 2025 - representing
19% growth from £16.8 million at 31 December 2024
● Record order book of £38.9m at December 31 2025 - representing 56% growth on
an order book of £24.9 million at December 31 2024
● Delivered 105% Net Revenue Retention (NRR)** on a constant currency basis,
reflecting successful customer retention and growth
2025 2024 Change
£000s or % £000s or %
Revenue 38,437 32,158 +20%
Revenue growth constant currency basis 24% 39% -15 ppts
Annual Recurring Revenue (ARR)** 19,958 16,801 +19%
Net Revenue Retention (NRR)** 105% 109% -4 ppts
Order book 38,916 24,930 +56%
Order book visibility for next 12 months 21,133 17,715 +19%
Gross profit 31,479 28,270 +11%
Gross profit margin 82% 88% -6 ppts
Adjusted EBITDA* 7,573 4,206 +80%
Adjusted EBITDA margin* 20% 13% +7 ppts
EBITDA* 5,855 2,259 +159%
EBITDA margin* 15% 7% +8 ppts
Profit / (loss) before tax 302 (1,908) n/a
Cash and cash equivalents 7,344 12,744 -42%
Commercial Highlights:
● 12% growth in number of customer therapeutic brands to 95
● Second PMx commercialization partnership signed in Q4 with an innovative US
Biotech
● AI further enhances and automates data processing - accelerating insight
generation for our customers
● Additional top 10 global pharma customers confirmed as enterprise-wide
engagement customers
● Consistently working with 18 of top 20 global pharma companies - DXRX platform
helped influence diagnostic testing and treatment decisions for 970,000
patients globally in 2025
● Continued strengthening of leadership team particularly in the US
Current Trading & Outlook:
● Strong finish to 2025 - Q1 2026 performing in line with the Board's
expectations with constant currency revenue growth of 15% compared against Q1
2025
● Global pharma and biotech customers are continuing to accelerate their shift
to precision medicine to improve patient access, capture lost revenue and
optimize commercial outcomes
● Ongoing enhancements to the DXRX platform are delivering operational leverage
● The Company is securing opportunities beyond precision medicine, supporting
new therapeutic brands and expanding revenue opportunities through adjacent
addressable markets
● The success of the Company's strategy and strength of its order book and
pipeline provide the Board with confidence that their targets for 2026 are on
track
Analyst Presentation:
A webinar presentation for analysts and investors will be held at 1400 BST
(0900 EDT) on Tuesday, 26 May 2026. Those wishing to attend can register their
interest using the following link:
https://us06web.zoom.us/webinar/register/WN_GfiWlsULT5eOj4C32oRmQQ
(https://us06web.zoom.us/webinar/register/WN_GfiWlsULT5eOj4C32oRmQQ)
* EBITDA is earnings before interest, tax, depreciation and amortization.
Adjusted EBITDA removes share-based payment charges and once-off exceptional
items.
**Annual Recurring Revenue (ARR) is the value of recurring subscription
revenue at a specific point in time that is expected to be recognised from
contracts over the next twelve months. Net Revenue Retention (NRR) is the net
percentage increase in customer ARR over twelve months.
Enquiries:
Diaceutics PLC
Ryan Keeling, Chief Executive Officer Tel: +44 (0)28 9040 6500
Nick Roberts, Chief Financial Officer investorrelations@diaceutics.com (mailto:investorrelations@diaceutics.com)
Canaccord Genuity Limited (Nomad & Broker) Tel: +44 (0)20 7523 8000
Simon Bridges, Andrew Potts, Harry Rees
About Diaceutics
At Diaceutics we believe that every patient should get the opportunity to
receive the right test and the right therapy to positively impact their
disease outcome. We provide the world's leading pharma and biotech companies
with an end-to-end commercialization solution for precision medicines through
data analytics, scientific and advisory services enabled by our platform DXRX
- The Diagnostics Network®.
Prior to publication the information communicated in this announcement was
deemed by the Company to constitute inside information for the purposes of
article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by
regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No
2019/310 ('MAR'). With the publication of this announcement, this information
is now considered to be in the public domain. The person responsible for
making this announcement on behalf of the Company is Nick Roberts, Chief
Financial Officer.
Chair's review
The infrastructure for modern medicine adoption
Leading the shift
Every innovative therapy begins with a patient whose condition must first be
correctly identified. Without effective diagnostic pathways, even the most
advanced medicines struggle to reach the people who could benefit from them.
Diaceutics was founded more than twenty years ago to address this challenge.
From the outset, we recognized that access to therapy is shaped by the
efficiency of the diagnostic pathway that precedes it. When diagnostic
pathways function well, patients are correctly identified and gain access to
treatment. When they don't, even highly innovative therapies fail to reach the
patients who need them.
This dependency became most visible with the emergence of precision medicine,
where biomarker testing determines whether a patient is eligible for targeted
therapies. Over the past two decades, Diaceutics has developed deep expertise
in understanding how patients move through diagnostic systems and how those
pathways can be improved. In doing so, we have supported the launch and
adoption of hundreds of precision therapies across global healthcare systems.
It is now clear that the discipline of identifying and activating patient
populations extends well beyond precision medicine. The capabilities developed
to support targeted therapies are increasingly relevant across the broader
pharmaceutical landscape. Successful therapy adoption now depends not only on
scientific innovation but also on the ability to combine diagnostic
intelligence, large-scale healthcare data and digitally enabled implementation
across complex healthcare systems.
The industry is now moving toward the therapy commercialization model that
Diaceutics has been developing for years.
Against this backdrop, 2025 has been an important year for the Company.
Following a period of thoughtful investment in our platform, internal systems,
data infrastructure, and leadership capabilities, Diaceutics has returned to
profitability while continuing to deliver strong revenue growth. This progress
reflects the operating leverage inherent in our platform model and the
disciplined execution of our management team.
The pharmaceutical industry itself continues to operate in a period of
considerable change. Traditional commercial approaches to therapy launch are
under increasing pressure, while geopolitical uncertainty and healthcare
budget constraints have added complexity for our customers. In many ways, the
past year has signaled the continued decline of legacy commercial models that
historically dominated drug commercialization.
At the same time, these pressures are increasing demand for the capabilities
Diaceutics provides. By integrating diagnostic intelligence with large-scale
healthcare data and digitally enabled implementation, we help pharmaceutical
companies understand how therapies move through real-world healthcare systems
and how patient identification can be improved.
As a result, our relationships with customers have continued to deepen.
Diaceutics now works with the majority of the world's leading pharmaceutical
companies, with increasing levels of enterprise engagement across their
therapy portfolios. The development of new partnership structures, including
the refinement and expansion of our PMx commercialization model, further
positions the Company as a long-term partner in therapy launch and adoption.
The role of DXRX
Central to this evolution is the DXRX platform. Over many years, we have built
an increasingly sophisticated infrastructure that integrates diagnostic lab
data, clinical intelligence, and real-world healthcare information to support
therapy commercialization.
The Board is increasingly aware of the strategic importance of the
infrastructure the Company has assembled. Platforms capable of integrating
large-scale diagnostic data, real-world healthcare information and actionable
commercial intelligence across healthcare systems are complex and time
consuming to build. They require years of data partnerships, technology
development, domain expertise, and trusted relationships with labs and
pharmaceutical companies. As the industry increasingly relies on these
capabilities to support therapy adoption, the strategic relevance of such
platforms continues to grow.
As adoption of the platform expands across enterprise customers and therapy
portfolios, the Board expects the increasing proportion of recurring and
platform-based revenues to further enhance the visibility and durability of
the Company's future earnings.
Alongside financial progress, the impact on patients continues to grow.
During 2025, the Company's programs and platforms helped influence diagnostic
testing and treatment decisions affecting more than 970,000 patients globally,
the largest annual impact in the Company's history. While we do not know the
individual stories behind these numbers, we recognize that these programs
enabled many patients to gain access to clearer diagnostic intelligence and
better-informed treatment choices.
We are privileged to be able to observe our business scaling not only in
revenue terms but also in measurable clinical impact. As Diaceutics continues
to grow, the number of patients influenced by our work continues to expand.
The Board believes this combination of commercial success and meaningful
healthcare impact is something our employees, partners, and shareholders
should take genuine pride in.
Built to lead
In recent years, we have strengthened the Board's composition to bring deeper
expertise across pharmaceutical commercialization, technology, finance, and
global markets. This collective experience provides strong oversight and
strategic guidance as the business continues to scale.
I would also like to recognize the leadership of our Chief Executive Officer,
Ryan Keeling. Under Ryan's leadership, the Company has successfully navigated
a significant period of investment while strengthening its platform, expanding
its customer relationships, and returning the business to profitability.
Looking ahead, the structural drivers supporting the Company remain firmly in
place. Precision medicine continues to expand, while pharmaceutical companies
increasingly rely on diagnostic intelligence, real-world data, and digital
implementation to ensure therapies reach the patients who need them.
The Board remains disciplined in balancing continued investment in technology
with the objective of translating growth into sustained profitability and
long-term shareholder value.
What began as a conviction about the importance of diagnostic pathways has
evolved into a platform supporting the commercialization of modern medicine.
With a differentiated platform, strong industry relationships, and an
experienced leadership team, Diaceutics is entering the next phase of its
development focused on scaling both its commercial impact and its contribution
to patient outcomes worldwide.
On behalf of the Board, I would like to thank our employees for their
dedication, our customers and partners for their trust, and our shareholders
for their continued support.
CEO's review
Executing our strategy at scale
Delivering on our promises
2025 was a year in which Diaceutics proved the strength of its model. In a
more challenging environment for pharma and biotech spending, the Group
delivered continued growth, returned to profitability, and demonstrated the
operating leverage now emerging from the investments made in recent years.
Revenue increased to £38.4 million, representing 20% growth and a 3-year
Compound Annual Growth Rate of 25%, while Adjusted EBITDA increased 80% to
£7.6 million. These results reflect more than financial progress. They
demonstrate the increasing importance of diagnostic intelligence to
pharmaceutical commercialization, and the ability of our platform to deliver
value to customers even as they apply greater scrutiny to external spend.
Over the past several years, we have invested deliberately in the data,
technology, AI-enabled automation and commercial capabilities required to
build a scalable platform serving the pharmaceutical industry. Those
investments are now translating into stronger customer engagement, expanding
enterprise relationships, and improving financial performance.
Our purpose remains unchanged: accelerating access to innovative therapies by
ensuring the right patients receive the right diagnostic testing and
treatment. As more therapies become diagnostic-driven, the opportunity for
Diaceutics continues to expand. Our priority is to execute with discipline
against that opportunity, scaling our platform while delivering sustainable,
profitable growth.
Scaling our commercial platform
A major strategic milestone in 2025 was the continued scaling of PMx, our
integrated commercialization partner model. PMx moves Diaceutics beyond the
provision of individual data products or services and positions the Group as
an embedded partner to pharmaceutical and biotech companies launching or
scaling diagnostic-driven therapies.
PMx combines the core strengths of the DXRX platform: real-time multimodal
data, diagnostic laboratory networks, patient identification signals, digital
engagement and peer-to-peer education. This integrated model enables customers
to identify eligible patients more effectively, improve diagnostic execution
and support therapy adoption at scale.
Our first PMx agreement was signed in August 2024 and subsequently expanded in
March 2025 following the licensing of the therapy to Partner Therapeutics. The
expanded agreement increased the total contract value up to £13.0 million and
extended the term through to September 2028 (subject to annual renewals). At
31 December 2025, the agreement contributed ARR of £2.6 million, or $3.4
million. This demonstrates the long-term nature of PMx partnerships and the
increasing strategic role Diaceutics can play in therapy commercialization.
In Q4 2025, we secured a second multi-year PMx commercialization partnership
with a leading US biotech. The total contract value secured in 2025 was £5.5
million and contributed £1.7 million ($2.3 million) to the ARR at 31 December
2025. The partnership has continued to expand in Q1 2026, demonstrating the
potential for PMx relationships to grow over time as Diaceutics becomes
increasingly embedded in the customer's commercialization strategy.
Adoption of our core DXRX platform also continues to grow. DXRX Signal remains
central to our customer proposition, enabling pharmaceutical companies to
understand testing behaviour, identify eligible patient populations and direct
commercial activity with greater precision.
We have also continued to broaden our commercial reach through data
partnerships and marketplace channels, creating new routes to market and
extending the commercial potential of our data assets. These developments
collectively support our transition toward a scalable platform model,
underpinned by recurring revenue, expanding enterprise relationships and
increasing visibility over future growth.
Strengthening leadership and capabilities
Our people remain central to the progress we are making as an organization.
Over the past two years, we have strengthened our leadership team and expanded
our commercial capabilities, particularly in the United States.
The appointment of Sandra Blake as Chief People Officer reflects our
commitment to building a high-performance, purpose-driven organization capable
of supporting our next phase of growth. Alongside this, we have made several
senior appointments and internal promotions that have strengthened our
commercial, scientific, and operational leadership.
These investments ensure we have the leadership depth and operational
capability required to scale the business effectively.
A growing structural market opportunity
The healthcare landscape continues to evolve rapidly as diagnostic
intelligence becomes increasingly central to treatment decisions. Precision
medicine remains the clearest expression of this shift, but the same
underlying need is now extending into a much broader universe of therapies
where identifying the right patient at the right time is critical to
commercial success.
We describe this broader opportunity as Precision for All. It reflects the
application of diagnostic intelligence, real-world healthcare data and digital
engagement beyond traditional precision medicine, into therapeutic areas where
lab data and diagnostic signals can materially influence patient
identification, therapy adoption and commercial outcomes.
We estimate that up to 60% of therapies currently in development are either
precision medicines or diagnostically driven therapies. This structural shift
significantly expands the long-term addressable market for Diaceutics, from
the core precision medicine brands we have historically served to a wider set
of diagnostically enabled therapies.
Today we work with 18 of the world's top 20 pharmaceutical companies,
supporting the commercialization of a growing number of therapies that depend
on diagnostic intelligence. Across areas such as the central nervous system,
cardiovascular disease, autoimmune conditions and infectious disease,
pharmaceutical companies are increasingly relying on diagnostic data and
patient identification strategies to support market access, therapy selection
and commercial execution.
Our DXRX platform is designed specifically for this opportunity. By combining
diagnostic data, real-world healthcare information, AI-enabled analytics and
scalable engagement capabilities, we help customers identify eligible
patients, understand diagnostic pathway gaps and improve therapy adoption. As
the industry shifts from broad commercial models toward more precise,
data-driven approaches, Diaceutics is well positioned to support a larger and
expanding addressable market.
Strengthening the DXRX platform
The continued development of the DXRX platform remains central to our
strategy. Over recent years, we have invested in building a differentiated
infrastructure layer that connects diagnostic data, real-world healthcare
information, analytics and customer activation capabilities into a single
commercialization platform.
At the core of DXRX is our ability to integrate and normalize complex
diagnostic data from multiple sources, including laboratory networks, claims
data, electronic medical records and other real-world data assets. This
creates a more complete view of the patient diagnostic journey, from initial
testing and physician behavior through to therapy eligibility and potential
treatment intervention points.
This capability is particularly important because diagnostic pathways are
fragmented. Relevant patient signals are often distributed across different
systems, laboratories, physicians and data formats. Through DXRX, we combine
these fragmented signals into structured, actionable intelligence that helps
pharmaceutical companies understand where eligible patients are being
identified, where diagnostic gaps exist, and where commercial or educational
action can improve therapy adoption.
A particularly important area of progress has been Physician Engage, which is
becoming an increasingly significant growth driver for the Group. Physician
Engage extends the value of DXRX beyond insight generation by enabling
customers to activate diagnostic intelligence directly with relevant
healthcare professionals. By connecting patient identification signals to
targeted physician engagement, we help customers move from understanding the
opportunity to taking timely action.
During the period, we continued to enhance Physician Engage, including through
the development of electronic medical record integrations, including Epic.
This enables engagement to be delivered more directly into physician office
workflows, strengthening the link between diagnostic intelligence and customer
activation. This development is consistent with a broader industry shift, also
reflected by companies such as Tempus, toward embedding data and AI-enabled
insights closer to existing clinical and operational workflows.
For Diaceutics, this is strategically important. Physician Engage enables
diagnostic signals generated through DXRX to be translated into targeted,
timely and compliant physician engagement. The ability to connect lab-derived
patient signals, disease-specific cohort logic and physician-office workflow
integration strengthens the customer proposition and supports a more scalable
model for therapy adoption.
We have also continued to develop our data methodology through more
sophisticated cohort definition and patient identification logic. Our
diagnostic deductive pathway approach enables us to define relevant patient
populations using validated combinations of diagnostic results, testing
behavior, physician attributes, claims-based treatment history and other
real-world signals. This moves the platform beyond simple data aggregation and
toward repeatable, disease-specific intelligence that can be deployed across
multiple therapy areas and customer use cases.
Artificial intelligence is becoming increasingly important to the scalability
of this model. We are applying AI and automation across data ingestion,
cleansing, normalization, signal detection, cohort refinement, workflow
automation and insight generation. Increasingly, we see the opportunity for
agentic AI to operate across the diagnostic pathway: identifying relevant data
patterns, accelerating interpretation, supporting quality control and helping
convert diagnostic signals into timely customer action.
The strategic value of DXRX is therefore not only the data we access, but the
infrastructure, methodology and activation layer we apply to that data. By
combining proprietary diagnostic data assets, real-world healthcare
information, AI-enabled analytics and scalable engagement capabilities, we
provide customers with actionable intelligence that supports more precise,
efficient and measurable therapy commercialization.
As the number of diagnostic-driven therapies continues to grow, the importance
of this infrastructure will increase. DXRX is designed to help pharmaceutical
and biotech customers move from broad, activity-led commercial models toward
targeted, data-driven approaches that identify eligible patients earlier,
understand diagnostic barriers more clearly and support therapy adoption with
greater precision. This continued platform development remains a core pillar
of our strategy as we scale the business and expand our addressable market.
Delivering growth with financial discipline
As the business continues to scale, we remain focused on maintaining strong
financial discipline while investing selectively in growth opportunities.
The return to profitability in 2025 reflects the operating leverage inherent
in our platform model. As revenue continues to grow and recurring solutions
expand, we expect this leverage to become increasingly visible in the
financial performance of the Group.
At the same time, we remain attentive to opportunities that could improve
operating efficiency, and accelerate the development of our platform,
including through strategic partnerships and selective inorganic opportunities
that would strengthen our capabilities or data assets.
Looking ahead
As the business enters its next phase of scale, our focus is increasingly on
building a more predictable, repeatable and execution-led growth model. The
return to profitability in 2025 demonstrates the operating leverage inherent
in the DXRX platform. Our priority now is to translate that platform leverage
into sustained revenue growth, margin progression and increasing visibility
over future earnings.
We are deliberately shaping the business around the drivers that create
quality of revenue: recurring solutions, deeper enterprise relationships,
higher revenue per brand, disciplined pipeline conversion and scalable
customer activation. As the DXRX platform becomes more embedded across
customer workflows, and as our product roadmap expands the value we can
deliver per therapy brand, we expect the financial benefits of scale to become
increasingly visible.
Our growth strategy is focused on making success more inevitable. That means
expanding the number of brands we support through Precision for All,
increasing spending per brand through a broader and more integrated product
suite, and opening new customer segments through a focused non-core growth
strategy. These initiatives are designed to reduce dependency on any single
product, customer type or market segment, while increasing the number of
routes through which Diaceutics can convert its data assets and platform
capabilities into revenue.
PMx is a particularly important part of this strategy. Following the success
of our first two PMx partnerships, we are actively developing a pipeline of 24
potential PMx customers, of which eight are already beginning to spend with
Diaceutics. This provides a clear opportunity to convert early customer
engagement into larger, multi-year, recurring relationships. Our objective is
to make PMx a repeatable commercial model: one that increases contract
duration, expands wallet share and positions Diaceutics as an embedded
commercialization partner for diagnostic-driven therapies.
Alongside our core pharma opportunity, we are pursuing selected non-core
customer segments where our diagnostic data, disease-specific intelligence and
activation capabilities can create meaningful value. These include customer
types that sit adjacent to our traditional pharma brand model but can benefit
from the same underlying infrastructure. This approach gives us additional
routes to market, improves the commercial yield from our data assets and
supports a larger long-term addressable market.
To support this next stage of growth, we are working with Alexander Group to
review and enhance our commercial model. This work is focused on strengthening
the mechanics of execution: clearer customer segmentation, sharper account
prioritization, improved sales coverage, more disciplined pipeline generation,
stronger stage-gate management and better alignment of commercial resources to
the highest-value opportunities across core pharma, PMx, Precision for All and
selected non-core customer segments. The objective is to build a commercial
engine that is not only larger, but more systematic, measurable and
repeatable.
We will continue to assess strategic partnerships and selective inorganic
opportunities where they can accelerate this plan, strengthen our data assets,
extend our technology capabilities, increase customer reach or improve
operating efficiency. Any such opportunities will be evaluated through the
same disciplined lens: whether they increase the predictability, scalability
and strategic value of the platform.
The opportunity ahead is significant. Our focus is to make that opportunity
executable. By combining a broader addressable market, a stronger product
roadmap, an expanding PMx pipeline, new customer types and a redesigned
commercial model, we are building a business with clearer growth levers,
stronger visibility and increasing operating leverage. These are exciting
times for Diaceutics, but our approach remains disciplined: scale the
platform, deepen customer relationships, improve commercial execution and
convert growth into sustainable profitability.
CFO's review
The start of a new era
2025 has been a defining year for our financial performance and shareholder
value and marked the start of a new era. It was a year marked by sustained
revenue performance and growth, an increasingly robust recurring revenue
model, and a continued commitment to financial discipline. This success has
been achieved against a backdrop of industry-wide challenges throughout the
year, including a rapidly evolving and complex macroeconomic landscape and
shifting market dynamics.
Despite this challenging environment, we broadly delivered to market
expectations*, demonstrating our ability to execute on our strategy with
precision and reliability, while enhancing shareholder value. We remain
focused on consistent delivery against clear financial and strategic targets.
Looking ahead to 2026, we aim to maintain our growth, balancing careful
investment in future growth with a sharp focus on continued profitability
growth and cash flow generation.
* 2025 market expectations for revenue were £39.0 to £40.2 million and Adjusted EBITDA were £6.9 to £7.3 million
Strong results in a changing market
KPIs and Alternative Performance Measures (APMs)
2025 2024 Change
£000s or % £000s or %
Revenue 38,437 32,158 +20%
Revenue growth constant currency basis* 24% 39% -15 ppts
Annual Recurring Revenue (ARR)* 19,958 16,801 +19%
Net Revenue Retention (NRR)* 105% 109% -4 ppts
Order book 38,916 24,930 +56%
Order book visibility for next 12 months 21,133 17,715 +19%
Gross profit 31,479 28,270 +11%
Gross profit margin 82% 88% -6 ppts
Adjusted EBITDA* 7,573 4,206 +80%
Adjusted EBITDA margin* 20% 13% +7 ppts
EBITDA* 5,855 2,259 +159%
EBITDA margin* 15% 7% +8 ppts
Profit / (loss) before tax 302 (1,908) n/a
Cash and cash equivalents 7,344 12,744 -42%
* Alternative Performance Measure
Alternative Performance Measures ('APMs')
In measuring and reporting financial information, the management team reviews
APMs such as EBITDA, adjusted EBITDA, revenue growth on a constant currency
basis, annual recurring revenue, and net revenue retention - none of which are
defined under financial reporting standards.
We believe that these measures, when considered in conjunction with defined
financial reporting measures, provide management and stakeholders with a
broader understanding of the performance of the business.
Operating profit is the financial reporting measure under UK adopted
international accounting standards most comparable to EBITDA and adjusted
EBITDA. EBITDA is defined as earnings before interest, tax, depreciation, and
amortization. The Directors may make certain adjustments to EBITDA for
non-recurring or non-cash items to derive adjusted EBITDA, both measures they
consider more readily reflect the Group's underlying trading performance,
enabling better comparisons to be made with prior periods and industry peers.
A reconciliation of operating profit to EBITDA and Adjusted EBITDA are
included below.
Annual Recurring Revenue (ARR) is the value of recurring subscription revenue
at a specific point in time that is expected to be recognized from contracts
over the next twelve months.
Net Revenue Retention (NRR) is the net percentage increase in existing
customer ARR over 12 months and helps to measure cumulative revenue retained
from existing customers by examining revenue added due to expansions and
contractions for a given period. NRR does not include growth as a result of
new customer ARR acquired in a period.
The Directors consider ARR and NRR to be key metrics when measuring the
strength and visibility of the Group's forward revenue, and of the Group's
progress toward realizing its near-term strategy of transitioning to a
platform-based recurring revenue model.
The Directors consider and report revenue and revenue growth in the current
reporting period on a constant currency basis. This approach is used because
the majority of the Group's customer contracts are written in US Dollars,
which can result in fluctuations in reported performance - relative to the
comparative period based on exchange rates.
Reporting revenue on a constant currency basis allows stakeholders to better
understand the underlying growth of the Group's activities, before the
influence of foreign currency movements.
'Order book' is defined under financial reporting standards as the aggregate
amount of the revenue transaction price allocated to customer contracts that
are partially or fully unsatisfied as of the year end and are not considered
an APM. Order book is disclosed in the notes to the financial statements.
We continue to evolve our KPIs and APMs to highlight and evidence the
financial and operational performance of the Group and its progress against
strategy.
Scaling the business while strengthening predictability
2025 marked a pivotal year for Diaceutics as we continued to scale our
commercial platform while significantly strengthening the quality, visibility,
and predictability of our revenues. Group revenue increased to £38.4 million,
representing 20% growth, supported by expanding enterprise adoption, strong
renewal activity, and continued demand for our platform-led solutions.
Constant currency revenue growth of 24% underscores the underlying momentum in
the business.
Our transition toward multi-year subscription and platform-based contracts
continued to enhance revenue durability. Annual Recurring Revenue (ARR) grew
19% to £20.0 million (28% growth to $26.9 million in USD), while Net Revenue
Retention (NRR) remained robust at 105% (106% in USD), reflecting healthy
expansion within existing accounts and continued high levels of customer
retention despite challenging pharma industry conditions impacting some large
pharma renewals as they restructured therapeutic brand budgets. Alongside
strong in-year performance, our order book increased 56% to £38.9 million,
and 12-month visibility rose to £21.1 million, providing a comparable level
of revenue visibility into 2026.
As with prior years, the shift toward recurring revenue influences the phasing
of income recognition, spreading a greater portion of revenue across multiple
quarters. While this delays some revenue recognition relative to upfront
project models, it provides a more resilient, scalable, and predictable
commercial foundation aligned to our long-term strategy.
EBITDA and profitability: building a sustainable growth model
2025 2024
£000s or % £000s or %
Operating profit / (loss) 43 (2,455)
- Depreciation & Amortization 5,812 4,714
EBITDA 5,855 2,259
EBITDA margin 15% 7%
Adjustments for:
- US sales tax liability - 439
- Redundancy costs 326 450
- Legal fees for capital reduction - 20
- M&A costs 472 -
- Share based payment charge and related costs 920 1,038
Adjusted EBITDA 7,573 4,206
Adjusted EBITDA margin 20% 13%
2025 also marked the Group's return to profitability with profit before tax
increasing to £0.3 million, demonstrating the operating leverage inherent in
our platform model, and notwithstanding additional costs absorbed in respect
of selected redundancies and M&A costs. EBITDA increased to £5.9 million,
an increase more than double the prior year. Adjusted EBITDA rose 80% to £7.6
million, delivering a margin of 20%, up from 13% in 2024. These improvements
reflect continued revenue expansion, a favorable mix toward high-margin
recurring solutions, and increasing efficiency across delivery operations.
The items adjusted out of EBITDA in 2025 included:
- Redundancy costs of £0.3 million (2024: £0.5 million) as a result
of selected changes to the operating business model as the business continues
to transition to more technology-led intelligence and engagement solutions,
- M&A costs relating to professional fees incurred of £0.5
million (2024: £nil) on early-stage acquisition activities which are being
investigated in the Group's primary US market. These costs, although
significant, represent investment in future acquisition opportunities which
could significantly enhance and advance the Group's strategy, and
- Share-based payment changes of £0.9 million (2024: £1.0 million),
which are model-based accounting charges in relation to the share options
issued to employees. These are added back as management believe they distort
the underlying performance of the Group due to their volatility and lack of
direct comparability with US-based privately owned peers.
There were no legal fees in relation to the capital reduction or historical US
sales tax liability costs as these were concluded and settled in 2024.
Gross margin remained strong at 82% (2024: 88%), within the range of
management's expectations, and consistent with a business increasingly
underpinned by proprietary data, analytics, and platform capabilities. The
gross profit margin compression in 2025 was due to additional expensed data
costs of £2.0 million, and related to data acquired in non-precision medicine
disease areas, a key addressable market growth area. The combination of
revenue growth, improved EBITDA and operating profit margins, and disciplined
cost management resulted in a profit before tax of £0.3 million, compared
with a £1.9 million loss in 2024 - representing a clear financial inflection
point as the business moves from an investment-led phase to one of scalable,
profitable growth.
Growth in adjusted EBITDA margin will be driven by:
● Continued revenue expansion, particularly in high-margin recurring
revenue solutions. We are targeting continued revenue and annual recurring
revenue growth.
● Discipline and focus, ensuring that investment is targeted at
high-return opportunities, AI technology is continually deployed to allow
rapid innovation at scale, and costs are managed through strong processes.
● Operational scalability, leveraging the AI and technology
infrastructure we built in prior years to deliver increasing returns and
margins, targeting growth in EBITDA and profit before tax.
This approach to financial management is expected to support profitability
while maintaining our growth momentum. The Group will continue to consider
M&A opportunities, and incur costs in relation to these, where it sees
scope to significantly enhance and progress the Group's current strategy.
Navigating uncertainty while delivering results
The operating environment in 2025 remained dynamic. The US pharmaceutical
sector, our largest market, continued to experience regulatory uncertainty and
more measured investment behaviors. Despite these headwinds, demand for
diagnostic- driven and real-world, data-enabled commercialization
capabilities remained strong.
Our customer base expanded further, reaching 53 customers (2024: 52) across 95
therapies (2024: 85). Average revenue per customer increased 17% to £0.73
million (2024: £0.62 million), and average revenue per brand increased 2% to
£0.43 million (2024: £0.42 million), reflecting deeper engagement across
therapeutic portfolios. Revenue from US-based customers increased to 93%
(2024: 92%) of total revenues, reinforcing the Group's strategic alignment to
its key US market.
We also continued to progress significant enterprise partnership structures.
As noted in the CEO Review, our first PMx agreement was expanded in March 2025
following the licensing of the therapy to Partner Therapeutics, increasing the
total contract value up to £13.0 million and extending the partnership
through to September 2028 (subject to annual renewals). This, together with
continued adoption of our DXRX platform solutions and the securing of a second
PMx agreement, demonstrates growing customer confidence in our ability to
serve as an embedded commercialization partner.
Maintaining financial discipline while investing for growth
2025 represented the first year of a return to profitability following our
planned 2023 and 2024 investment cycle, with a rebalanced focus toward scaling
efficiently.
Investment in AI and platform development remained consistent in 2025 at £3.7
million (2024: £3.6 million), while investment in data assets increased to
£6.0 million (2024: £4.2 million). These targeted investments ensure the
Group remains at the forefront of diagnostic and commercial intelligence while
avoiding the large-scale capitalization seen in earlier years.
We expect to continue to invest in these two key pillars of the business
model, but the rate of growth will moderate as the business matures, and in
the near-term we expect data investment to stay at a consistent level.
Cash management remained disciplined throughout the period. We closed the year
with £7.3 million in cash and cash equivalents (31 December 2024: £12.7
million), while maintaining careful control over working capital, foreign
exchange exposure, and discretionary spending.
The year end cash position was lower than originally expected despite the
growth in revenue due to the back end phasing of revenue in the year and a
broad push across all top 20 global pharma companies to extend their credit
terms in the face of tougher 2025 trading conditions. This meant that cash
receipts from invoicing before year end was received in early 2026.
As the business continues to scale, we expect cash conversion to improve,
driven by profitability and a growing recurring revenue base. As at March 31,
2026, cash and cash equivalents remained flat from the year end at £7.3
million. Despite collecting a majority of the outstanding customer receivables
from the year end, the average time to collect customer receipts remains
protracted, and the company has made early strategic spending decisions in the
2026 year in respect of M&A activities, data and technology which have
resulted in cash balances remaining flat at the end of Q1 2026. The Company
had access to an uncommitted overdraft facility of £2.0 million during Q1
2026, which was undrawn, providing additional flexibility for working capital
requirements, and is looking to extend that further into 2026.
Investing in people to strengthen our commercial capabilities
Our people continue to be central to our performance and long-term success.
During 2025, headcount increased from 199 to 205, with a strong emphasis on
expanding our commercial capabilities in the US to support enterprise
customers and drive deeper market penetration. We also strengthened leadership
capability and organizational effectiveness through enhancements to our
performance and growth framework, learning pathways, leadership behaviors, and
career development structures.
These initiatives ensure we have the operational depth, capability, and
culture required to scale our platform and support customers globally.
Looking ahead to 2026: execution and profitability
Entering 2026, our priorities are clear. We aim to continue to perform and
grow, with an emphasis on expanding ARR and deepening enterprise engagements.
We remain disciplined in our investment decision-making, focusing on
high-return opportunities, continued deployment of AI across our operations,
and careful management of costs.
We also expect to maintain strong cash discipline as revenue growth
increasingly converts to EBITDA and profit. While we remain open to strategic
partnerships and selective M&A that enhance our platform or data assets,
these will be pursued with the same measured approach that underpins our
broader financial strategy.
Meeting targets, driving progress
2025 was a year of strong financial delivery, disciplined execution, and
continued strategic progress. We strengthened our commercial platform,
deepened customer relationships, broadened our recurring revenue base, and
demonstrated the scalability of our business model. As we move into 2026, we
do so with momentum and a clear focus: delivering consistent growth, and
continuing to unlock meaningful value for our customers, shareholders, and
most importantly, the patients our work supports.
Group Profit and Loss Account
for the year-ended 31 December 2025
Note 2025 2024
£000's £000's
Revenue 4 38,437 32,158
Cost of sales 5 (6,958) (3,888)
Gross profit 31,479 28,270
Administrative expenses 5 (31,691) (30,742)
Other operating income 255 17
Operating profit/(loss) 5 43 (2,455)
Finance income 317 601
Finance costs (58) (54)
Profit/(loss) before tax 302 (1,908)
Income tax (charge)/credit (205) 205
Profit/(loss) for the financial year 97 (1,703)
Basic earnings/(loss) per share 0.11 (2.02)
Diluted earnings/(loss) per share 0.11 (2.02)
All results relate to continuing operations.
Group Statement of Comprehensive Income
for the year-ended 31 December 2025
2025 2024
£000's £000's
Profit/(loss) for the financial year 97 (1,703)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (354) (386)
Total comprehensive loss for the year, net of tax (257) (2,089)
All results relate to continuing operations.
Group Statement of Financial Position
as at 31 December 2025
Note 2025 2024
ASSETS £000's £000's
Non-current assets
Intangible assets 7 16,080 15,413
Right of use assets 1,108 1,026
Property, plant and equipment 556 652
Deferred tax asset 2,902 2,000
20,646 19,091
Current assets
Trade and other receivables 8 21,256 16,043
Income tax receivable 762 742
Cash and cash equivalents 7,344 12,744
29,362 29,529
TOTAL ASSETS 50,008 48,620
EQUITY AND LIABILITIES
Equity
Equity share capital 10 170 170
Treasury shares 10 (312) (312)
Translation reserve 10 (980) (626)
Profit and loss account 41,602 40,625
TOTAL EQUITY 40,480 39,857
Non-current liabilities
Lease liability 882 907
Provision for dilapidation 95 91
977 998
Current liabilities
Trade and other payables 9 8,254 7,611
Lease liability 270 153
Income tax liability 27 1
8,551 7,765
TOTAL LIABILITIES 9,528 8,763
TOTAL EQUITY AND LIABILITIES 50,008 48,620
Group Statement of Changes in Equity
for the year-ended 31 December 2025
Equity share capital Share premium Treasury shares Translation reserve Profit and loss account Total
equity
£000's £000's £000's £000's £000's £000's
At 1 January 2024 169 37,126 (312) (240) 4,043 40,786
Loss for the year - - - - (1,703) (1,703)
Other comprehensive loss - - - (386) - (386)
Total comprehensive loss for the year - - - (386) (1,703) (2,089)
Transactions with owners, recorded directly in equity
Share-based payment - - - - 1,020 1,020
Exercise of warrant - 135 - - - 135
Issue of shares 1 - - - - 1
Deferred tax credit taken directly to equity - - - - 4 4
Cancellation of share premium - (37,261) - - 37,261 -
Total transactions with owners 1 (37,126) - - 38,285 1,160
At 31 December 2024 170 - (312) (626) 40,625 39,857
Equity share capital Profit and loss account Total
equity
Share premium Treasury shares Translation reserve
£000's £000's £000's £000's £000's £000's
At 1 January 2025 170 - (312) (626) 40,625 39,857
Profit for the year - - - - 97 97
Other comprehensive loss - - - (354) - (354)
Total comprehensive loss for the year - - - (354) (97) (257)
Transactions with owners, recorded directly in equity
Share based payment - - - - 915 915
Deferred tax credit taken directly to equity - - - - (35) (35)
Total transactions with owners - - - - 880 880
At 31 December 2025 170 - (312) (980) 41,602 40,480
Group Statement of Cash Flows
for the year-ended 31 December 2025
Note 2025 2024
£000's £000's
Operating activities
Profit/(loss) before tax 302 (1,908)
Adjustments to reconcile net profit/loss to net cash provided by operating
activities
Net finance costs (259) (547)
Amortization of intangible assets 7 5,355 4,306
Impairment of intangible assets 7 - 87
Depreciation of right to use asset 291 154
Depreciation of property, plant and equipment 166 167
Research and development tax credits (62) -
Share-based payments 915 1,020
Increase in trade and other receivables (5,151) (4,676)
Increase in trade and other payables 643 3,374
Cash provided by operating activities 2,200 1,977
Tax paid (1,021) (1,326)
Net cash provided by operating activities 1,179 651
Investing activities
Purchase of intangible assets 7 (6,377) (4,532)
Purchase of property, plant and equipment (71) (100)
Finance income interest received 317 601
Net cash used in investing activities (6,131) (4,031)
Cash flows from financing activities
Interest paid - (1)
Leasehold repayments (333) (199)
Issue of shares on exercise of a warrant 10 - 136
Net cash used in financing activities (333) (64)
Net decrease in cash and cash equivalents (5,285) (3,444)
Net foreign exchange loss (115) (479)
Cash and cash equivalents at 1 January 12,744 16,667
Cash and cash equivalents at 31 December 7,344 12,744
Notes to the Group Financial Statements
for the year-ended 31 December 2025
1. General information
Diaceutics PLC (the "Company") is a public company limited by shares,
incorporated, domiciled and registered in Northern Ireland. The Company's
registration number is NI055207, and the registered office is First Floor,
Building Two, Dataworks at King's Hall Health & Wellbeing Park, Belfast,
County Antrim, Northern Ireland, BT9 6GW.
The consolidated financial statements consolidate those of the Company and its
subsidiaries (together referred to as the "Group").
The principal activity of the Group is data, data analytics and implementation
services.
The Group has established a core suite of products and outsourced advisory
services which help its Pharma customers to optimize and deliver their
marketing and implementation strategies for companion diagnostics. Their
mission is to design, create and implement innovative solutions that enhance
speed to market and increase the effectiveness of all the stakeholders in the
personalised medicine industry.
The financial statements are presented in pounds sterling.
Basis of accounting
The financial information presented in this report has been prepared using
accounting policies consistent with International Financial Reporting
Standards (IFRSs) as adopted by the United Kingdom and as set out in the
Group's annual financial statements in respect of the year ended 31 December
2024. The financial information does not include all the information and
disclosures required in the annual financial statements. The Annual Report and
Financial Statements will be approved by the Board of Directors and reported
on by the Auditor in due course. Accordingly, the financial information within
this preliminary results statement is unaudited. The Annual Report will be
distributed to shareholders and made available on the Company's website in due
course. It will also be filed with the Company's annual return at Companies
House.
Going concern
The financial performance and statement of financial position at 31 December
2025 along with a range of scenario plans to 31 December 2028 has been
considered, applying different sensitives to revenue. Across these scenarios,
including at the lower end of the range, there remains significant headroom in
the minimum cash balance over the period to 31 December 2028 and the Directors
have satisfied themselves that the Group has adequate funds in place to
continue in operational existence for the foreseeable future. Accordingly, the
Directors continues to adopt the going concern basis in preparing its
consolidated financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up
to 31 December each year. Control is achieved when the Company has power over
the subsidiary, is exposed, or has rights, to returns from its involvement
with the subsidiary; and has the ability to use its power to affect its
returns.
The Company considers all relevant facts and circumstances in assessing
whether it has control over a subsidiary, including the ability to direct the
relevant activities at the time that decisions need to be made.
Intra-group balances and transactions, and any unrealised income and expenses
(except for foreign currency transaction gains or losses) arising from
intra-group transactions, are eliminated. The financial statements of
subsidiaries are included in the consolidated financial statements from the
date on which control commences until the date on which control ceases.
Employee Benefit Trusts (EBTs), including the UK and Global Share Incentive
Plans (SIP), are accounted for under IFRS 10 and are consolidated on the basis
that the parent has control, thus the assets and liabilities of the EBT are
included on the Company statement of financial position and shares held by the
EBT in the Company are presented as a deduction from equity.
2. Material accounting policy information
New and amended IFRS standards that are effective for the current year
The Group has applied the following standards and amendments for the first
time for their annual reporting year commencing 1 January 2025:
· Amendments to IAS 21: Lack of exchangeability
There has been no material impact on the financial statements as a result of
any of these changes.
New accounting standards and interpretations not yet adopted by the Group
The following new accounting standards, amendments and/or interpretations have
been published and are not mandatory for 31 December 2025 reporting year. They
have not been early adopted by the Group and these standards are not expected
to have a material impact on the Group in the current or future reporting
periods and on foreseeable future transactions:
· IFRS 18: Presentation and disclosures in financial statements
(effective date: 1 January 2027); and
· IFRS 19: Subsidiaries without public accountability: disclosures
(effective date: 1 January 2027).
· Amendments IFRS 9 and IFRS 7 regarding the classification and
measurement of financial instruments (effective date: 1 January 2026)
· Annual Improvements to IFRS Accounting Standards - Volume 11
· Translation to a Hyperinflationary Presentation Currency
(Amendments to IAS 21)
We are still assessing the implications of the new standards and
interpretations however it is not expected to have a material impact on the
Group.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable
for the provision of services in the ordinary course of the Group's
activities. Revenue is shown net of value-added tax and after eliminating
sales within the Group.
The Group has two separate products and service lines: Insight &
Engagement Solutions (Data and related information services); Scientific &
Advisory Services (Professional services).
The Group's performance obligations for these revenue streams are deemed to
either be the provision of specific deliverables to the customer, at or over a
period of time, or subscription-based deliverables.
Revenue billed to the customer is allocated to the various performance
obligations, based on the relative fair value of those obligations, and is
then recognised when it transfers control of a deliverable to a customer as
follows:
Insight & Engagement Solutions (Data & related information services)
Insight & Engagement Solutions (formerly referred to as Data) comprise
access to the DXRX platform diagnostic testing data repository to utilise
licensed data insight products, typically: Lab Segmentation, Physician
Segmentation, Testing Rates Tracker and Physician Signal.
The contract with the customer defines the nature, quantity and price of the
data license to be provided. Licenses provided under each contract are split
into the identifiable and distinct performance obligations which are satisfied
at or over time, depending on whether the data license deliverable has
retrospective or prospective components, and if there are any data consultancy
service components included. In determining the performance obligations for
the data consultancy service component of the customer contract, judgment may
be required in interpreting the contract wording and customer expectation of
the data consultancy as a separately identifiable and distinct service if the
contract is not explicit.
The transaction price associated with the performance obligation components is
determined by reference to the contract and change orders. Where the contract
does not determine the transaction price for performance obligations,
judgement may be required to determine the transaction price. These judgements
include allocating transaction prices to data consultancy services based on an
adjusted market assessment approach with the residual transaction price
allocated to the retrospective and prospective data license performance
obligations pro-rated depending on the data license period of coverage.
Where a contract confers the customer with the right to benefit from existing
data insight IP as at a specific date, as is the case for a retrospective data
license, that is treated as a right to use licence and the revenue recognised
at a point in time when delivered or access is enabled to the data. Where a
contract confers the customer with the right to benefit from future data
insight IP developments as they occur, as is the case for a prospective data
license, that is treated as a right to access licence and revenue recognised
on a subscription basis over the period of time that the customer has access
to the data and the right to future IP developments. Revenue for data
consulting services is recognised as the performance obligation milestones are
satisfied.
Insight & Engagement Solution services are invoiced based on predetermined
activities or milestones. Where there is a timing difference between the
recognition of revenue and invoicing under a contract, a contract asset
(accrued revenue) or liability (deferred revenue) is recognised.
Scientific Advisory Services (Professional & Tech-Enabled Services)
Scientific Advisory Services (formerly referred to as Advisory Services and
Tech-Enabled Services) comprise a range of services developed to help improve
patient care by accelerating the development, delivery and uptake of precision
medicine, as well as a suite of services designed to solve the challenges
affecting precision medicine commercialization success at a regional and
global level. Typically this includes ranges of Consulting, Strategy and
Planning, Insights, Education and Content Production, Impact Assessments,
Market Access studies, Lab Alerts, Lab Training, Lab Engagement and Physician
Engagement.
The contract with the customer defines the nature, quantity and price of the
various services to be provided. Services provided (including those provided
by a third party and reimbursed by the customer) under each contract are split
into the identifiable and distinct performance obligations which are satisfied
over time. The Group is the contract principal in respect of both direct
services and the use of third parties that support the service. The
transaction price is determined by reference to the contract and change
orders, including any pass-through or reimbursable expenses, adjusted to
reflect the amount the Group expects to be entitled to in exchange for
transferring promised goods or services to a customer.
Revenue for the identifiable and distinct services is recognised as the
contract performance obligations are satisfied. The progress towards
completion of Scientific Advisory Services performance obligations is measured
at a point in time: where milestones specified within client contract are
satisfied or based on an input measure being project costs incurred to date as
a proportion of total project costs (including third party costs) at each
reporting period, depending on the nature of the service obligation.
The service fees for Scientific Advisory Services are invoiced based on
predetermined activities or milestones. Third party costs are invoiced to
customers as they are incurred. Where there is a timing difference between the
recognition of revenue and invoicing under a contract, a contract asset
(accrued revenue) or liability (deferred revenue) is recognised. Significant
accrued and deferred revenue can arise for the Scientific Advisory Services as
a result of these timing differences.
Contract assets and liabilities
The Group recognises contract assets in the form of accrued revenue when the
value of satisfied or part-satisfied performance obligations is in excess of
the payment due to the Group, and deferred revenue when the amount of
unconditional consideration is in excess of the value of satisfied or part
satisfied performance obligations. Once a right to receive consideration is
unconditional, that amount is presented as a trade receivable.
Changes in contract balances typically arise due to:
- adjustments arising from a change in the estimate of the cost to
complete the project, which results in a cumulative catch-up adjustment to
revenue that affects the corresponding contract asset or liability;
- the recognition of revenue arising from deferred revenue; and
- the reclassification of amounts to receivables when a right to
consideration becomes unconditional.
Cost to obtain and fulfil contracts
Contract fulfilment costs in respect of the service line contracts are
expensed as incurred.
The Group expenses pre-contract bidding costs which are incurred regardless of
whether a contract is awarded.
Intangible assets
Research and development
Expenditure on research activities and patents is recognised in the profit and
loss account as an expense as incurred.
Expenditure on development activities is capitalised if the product or process
is technically and commercially feasible and the Group intends and has the
technical ability and sufficient resources to complete development, future
economic benefits are probable, and if the Group can measure reliably the
expenditure attributable to the intangible asset during its development.
Development activities involve design for, construction or testing of the
production of new or substantially improved products or processes. The
expenditure capitalised includes the cost of infrastructure and direct labour
including employer national insurance. Other development expenditure is
recognised in the profit and loss account as an expense as incurred.
Capitalised development expenditure is stated at cost until it is brought into
use. Capitalised development expenditure that is not available for use is
tested for impairment annually.
Other intangible assets
Other intangible assets that are acquired by the Group are stated at cost less
accumulated amortization and accumulated impairment losses.
Amortization
Amortization is charged to the profit or loss on a straight-line basis over
the estimated useful lives of intangible assets. Intangible assets are
amortized from the date they are available for use. The estimated useful lives
are as follows:
· Patents and trademarks
3 years (33.3% straight line) from date of registration
·
Datasets
3 years (33% straight line)
·
Software
5 years (20% straight line)
· Platform
10 years (10% straight line)
· Platform
algorithms 6 years
(16.7% straight line)
The Group reviews the amortization period and method when events and
circumstances indicate that the useful life may have changed since the last
reporting date. In 2023, the Group changed the estimated useful life of its
datasets from 4 years to 3 years. The revised useful life is based on
management's assessment of the period that more accurately reflect the
weighted average timeframes of the data commercial and internal use cases.
Impairment
Intangible assets, property, plant and equipment, and right-of-use assets are
tested for impairment at the reporting date, or whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets
(cash-generating units).
The Group also considered the potential impact of climate change. This is an
area of estimation and judgement.
3. Judgements in applying accounting policies and key sources
of estimation uncertainty
The preparation of the Group and Company financial statements requires
management to make judgements and estimates that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expenses. The Group has considered the impact of climate change on the
consolidated financial statements, but has concluded that is does not have a
material impact in the carrying value of assets, the useful life of assets and
provisions as at 31 December 2025.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those described in the last annual financial statements and are
summarised below.
Sources of estimation uncertainty
Source of estimation uncertainty Description
Useful economic life (UEL) of intangible assets The assessment of UEL of data purchases and platform requires estimation over
the period in which these assets will be utilized, it based on
information on the estimated technical obsolescence of such assets and latest
information on commercial and technical use. The platform has been
assessed to have a UEL of 10 years, platform algorithms six years and data
three years. In 2023, the Group changed the estimated useful life of its
datasets from four years to three years. The revised useful life is based on
management's assessment of the period that more accurately reflect the
weighted
average timeframes of the data commercial and internal use cases. The change
in useful lives were accounted for prospectively. There were no
changes in useful lives of other intangible assets. Further details are
disclosed in note 7 intangibles.
Impairment of assets The recoverable amount of property, plant and equipment, intangible assets and
right‑of‑use assets is assessed in accordance with IAS 36 Impairment of
Assets. The Group performs an annual review to determine whether there are any
indicators of impairment. Where such indicators exist, the Group and the
Company are required to estimate the recoverable amount of the relevant asset.
During the year ended 31 December 2025, the Group assessed whether any
indicators of impairment were present that would necessitate an impairment
review. Based on this assessment, no impairment indicators were identified,
and accordingly no impairment charge has been recognized in the year. However,
management judgment in assessing impairment remains a key source of estimation
uncertainty, particularly in light of the impairment recognized in the prior
year. In the year ended 31 December 2024, the Group determined that its
Singaporean subsidiary was to be wound down, as it was not expected to
generate future cash flows. As a result, the carrying value of the intangible
assets in that subsidiary exceeded their recoverable amount, and an impairment
charge of £87,000 was recognized in respect of intangible assets held by
Diaceutics Pte Limited. While the circumstances giving rise to the prior year
impairment have been resolved, the assessment of recoverable amounts continues
to involve judgment, particularly in determining future cash flow projections
and assumptions. Further details are disclosed in note 7 - Intangible Assets.
With respect to the impairment considerations of an intangible asset,
significant estimates are considered within the value in use calculation. The
most significant estimate is the revenue growth rate. Refer to note 7 -
Intangible Assets, for details of the impairment review and sensitivity
analysis.
Discount rate Application of IFRS 16 requires the Group and Company to make significant
estimates in assessing the rate used to discount the lease payments in order
to calculate the lease liability. The incremental borrowing rate depends on
the term, currency and start date of the lease and is determined based on a
series of inputs including the Group commercial borrowing rate of 4.3% (2024:
4.3%).
Revenue In revenue recognition for certain Scientific & Advisory Services where
the input method is used to determine the revenue over a period of time, a key
source of estimation will be the total budgeted hours to completion for
comparison with the actual hours spent. Further details are disclosed in note
4 revenue and segmental analysis.
Attrition rate In the calculation of share-based payments and related costs charge, an
assessment of expected employee attrition is used based on expected employee
attrition and, where possible, actual employee turnover from the inception of
the share option plan. The attrition rate varies depending on the nature of
the award, rising to a maximum 3-year rate of 10.0%.
Vesting probability and period In the calculation of Share Based Payments and related costs charge an
assessment of expected probability that certain performance criteria will be
(Group and Company)
met within the vesting time period and the length of the vesting period.
Critical accounting judgements
Accounting policy Description of critical judgement
Revenue In determining the performance obligations for the data consultancy service
component of Insight & Engagement Solutions, judgment may be required in
interpreting the contract wording and customer expectation of the data
consultancy as a separately identifiable and distinct service, if the contract
is not explicit. The transaction price associated with the performance
obligation components of Insight & Engagement Solution services is
determined by reference to the contract and change orders. Where the contract
does not determine the transaction price for performance obligations, judgment
may be required to determine the transaction price. These
judgments include allocating transaction prices to data consultancy services
based on an adjusted market assessment approach with the residual transaction
price allocated to the retrospective and prospective data license performance
obligations pro-rated
depending on the data license period of coverage.
Deferred tax In assessing the requirement to recognise a deferred tax asset, management
carried out a forecasting exercise to assess whether the Group and Company
will have sufficient future taxable profits on which the deferred tax asset
can be utilised. This forecast required management's judgment as to the future
performance of the Group and Company.
Intangible assets The Group capitalises costs associated with the development of the DXRX
platform and data lake. These costs are assessed against IAS 38 Intangible
Assets to ensure they meet the criteria for capitalisation.
4. Revenue and segmental analysis
Operating Segments
The Group currently operates under one reporting segment, there are no
individual groups of assets generating distinct and separately identifiable
cashflows. Revenue is analysed under two separate revenue streams. Revenue
represents the amounts derived from the provision of services which fall
within the Group's ordinary activities, stated net of value added tax. Revenue
is principally generated from the DXRX platform Insight & Engagement
Solutions lines, as well as the Scientific Advisory Services lines. Revenue is
disaggregated by primary geographic market, timing of recognition and by
product/service line. Timing of revenue recognition and product/service line
are the primary basis on which management reviews the business.
Revenue
For all periods reported the Group operated under one reporting segment but
revenue is analysed under two separate product / service
lines.
The following tables present the disaggregated Group revenue for the current
and prior financial years:
a. Major product/service line
2025 2024
£000's £000's
Insight & Engagement Solutions 28,562 23,117
Scientific & Advisory Services 9,875 9,041
38,437 32,158
b. Timing of recognition
2025 2024
£000's £000's
Point in time revenue recognition 17,170 15,223
Over time and input method revenue recognition 21,267 16,935
38,437 32,158
c. Geographical market by customer location
2025 2024
£000's £000's
North America 35,848 29,537
UK 766 547
Europe 1,790 1,893
Asia and Rest of World 33 181
38,437 32,158
There was one customer in 2025 who had sales which exceeded 10% of total
revenue accounting for £6,564,000 (18%) of Group revenues. In 2024 one
customer had sales exceeding 10% of total revenue, accounting for £4,664,000
(15%) of Group revenues.
The receivables, contract assets and liabilities in relation to contracts with customers are as follows:
2025 2024
£000's £000's
Contract assets
Trade receivables 9,872 10,659
Accrued revenue 9,834 4,155
Contract liabilities
Deferred revenue 313 237
Accrued revenue primarily relates to consideration for work completed but not
billed at the reporting date. The contract assets are transferred to trade
receivables when the rights become unconditional.
Deferred revenue primarily relates to the advance consideration received from
customers. There are no significant financing components associated with
deferred revenue.
There were no significant amounts of revenue recognised in the current or
prior year arising from performance obligations satisfied in previous periods.
The carrying value of trade receivables and accrued revenue approximates to
their fair value at the reporting date. Information about the Group's exposure
to credit risks and expected credit losses for trade receivables and accrued
revenue is included in note 8.
Order Book
The aggregate amount of the transaction price allocated to product and service
contracts that are partially or fully unsatisfied as at the 2025 year end
('Order Book') are as follows:
2026 2027 2028+ Total
£000's £000's £000's £000's
Platform-based products and services 16,251 10,495 5,367 32,113
Advisory services 4,882 1,383 538 6,803
21,133 11,878 5,905 38,916
Order book as at the 2024 year end:
2025 2026 2027+ Total
£000's £000's £000's £000's
Platform-based products and services 12,943 4,891 268 18,102
Advisory services 4,772 2,056 - 6,828
17,715 6,947 268 24,930
The order book as at 31 December 2025 and 2024 includes future contracted
revenue beyond 2026 and 2025 which, although subject to annual customer break
clauses, the Group expects the break clauses will not be exercised by
customers, and the revenue and performance obligations deliverable under these
contracts will be realised.
5. Operating profit/(loss)
2025 2024
£000's £000's
Employee benefit costs
Wages and salaries 17,143 16,989
Social security costs 2,223 2,330
Pension costs 537 496
Benefits 458 309
Share-based payments and related costs 920 1,038
Capitalised development costs (222) (351)
Total employee benefit costs 21,059 20,811
Other cost of sales and administrative expenses
Amortization of intangible fixed assets 5,355 4,306
Depreciation of tangible fixed assets 166 167
Impairment of intangible fixed assets - 87
Right-of-use depreciation 291 154
Subcontractor costs 949 1,052
Platform and data costs 4,786 1,680
Travel costs 655 949
Legal and professional 1,120 1,416
Loss/(gain) on foreign exchanges 152 (362)
Other expenses 4,116 4,370
Total other cost of sales and administrative expenses 17,590 13,819
Total cost of sales and administrative expenses 38,649 34,630
Included within other expenses is £0.5m (2024: £nil) relating to
professional fees incurred on early-stage acquisition activities which are
being investigated in Group's primary US market. These costs, although
significant represent investment in future opportunities which could
significantly enhance and advance the Group's strategy. Also within other
expenses in 2025 is £nil (2024: £0.5m) related to US sales tax costs
pertaining to the year. These sales tax costs would usually be charged to
customers, recovered and remitted to the relevant US state authorities with no
impact to the costs of the Group. However, because the Group had not
historically registered for sales taxes in certain states, the related costs
could not be charged and recovered from customers. As such, the Group has
disclosed this historic position to the relevant state authorities and settled
this liability during 2024. Sales taxes arising on sales in these states are
now charged to customers, recovered and remitted with no significant further
impact to the costs of the Group.
6. Earnings per share
Basic earnings per share are calculated based on the profit & loss for the
financial year attributable to equity holders divided by the weighted average
number of shares in issue during the year.
Diluted earnings per share are calculated on the basic earnings per share
adjusted to allow for the issue of ordinary shares on the conversion of the
convertible loan notes and employee share options.
Profit/(loss) per share attributable to shareholders
2025 2024
£000's £000's
Profit/(loss) for the financial year 97 (1,703)
Weighted average number of shares to shareholders
2025 2024
Number Number
Shares in issue at the end of the year 84,912,435 84,773,888
Weighted average number of shares in issue 84,834,336 84,705,590
Less treasury shares (252,063) (252,063)
Weighted average number of shares for basic earnings per share 84,582,273 84,453,527
Effect of dilution of Share Options 543,381 -
Weighted average number of shares for diluted earnings per share 85,125,654 84,453,527
Earnings per share 2025 2024
Pence Pence
Basic earnings/(loss) per share 0.11 (2.02)
Diluted earnings/(loss) per share 0.11 (2.02)
The group has outstanding share options which are dilutive for the current
year. Accordingly, these options have been considered in the calculation of
diluted earnings per share. They were antidilutive in the prior year.
7. Intangible assets
Patents and trademarks Datasets Platform Software Total
£000's £000's £000's £000's £000's
Cost
At 1 January 2024 1,179 10,636 13,366 975 26,156
Foreign exchange translation (38) 92 (58) 1 (3)
Additions 6 4,201 272 53 4,532
At 31 December 2024 1,147 14,929 13,580 1,029 30,685
Foreign exchange translation 36 (617) (62) 1 (648)
Additions 20 6,021 226 110 6,377
At 31 December 2025 1,203 20,333 13,744 1,134 36,414
Patents and trademarks Datasets Platform Software Total
Amortization £000's £000's £000's £000's £000's
At 1 January 2024 1,174 5,962 3,157 601 10,894
Foreign exchange translation (38) 36 (13) - (15)
Charge for the year 5 2,835 1,368 98 4,306
Impairment loss - 4 83 - 87
At 31 December 2024 1,141 8,837 4,595 699 15,272
Foreign exchange 36 (299) (28) (2) (293)
Charge for the year 5 3,871 1,363 116 5,355
At 31 December 2025 1,182 12,409 5,930 812 20,334
Net book value
At 31 December 2025 21 7,924 7,814 321 16,080
At 31 December 2024 6 6,092 8,985 330 15,413
Intangible assets relate to patents, trademarks, software, DXRX platform and
datasets which are recorded at cost and amortized over their useful economic
life which has been assessed as three to ten years. The Group assesses the
useful life of all assets on an annual basis. In 2023, the Group changed the
estimated useful life of its datasets from 4 years to 3 years. The Group
assesses the useful life of all assets on an annual basis.
The Group has determined that the useful life of data and platform is a
significant area of estimation.
The platform has been assessed to have a useful life of 10 years based on
information on the estimated technical obsolescence of such assets. However,
the actual asset useful life may be shorter or longer than 10 years depending
on technical innovations and other external factors. If the useful life were
reduced by 2 years, the carrying amount of the asset at 31 December 2025 would
reduce by £326,000 (2024: £267,000) to £7,488,000 (2024: £8,718,000). If
the useful life of the asset were increased by 2 years, the carrying amount of
the asset at 31 December 2025 would increase by £217,000 (2024: £285,000) to
£8,031,000 (2024: £9,270,000).
On reviewing the useful life of the datasets it was determined that based on
latest information on commercial and technical use, that three years
represented the best estimate of the useful life of such assets, as this
reflects the period over which this data can provide meaningful insights to
support client projects. However, the actual asset useful life may be shorter
or longer than three years depending on technical innovations and other
external
factors. If the useful life were 2 years, the carrying amount of the asset at
31 December 2025 would reduce by £451,000 (2024: £1,475,000) to £7,473,000
(2024: £4,617,000). If the useful life of the asset were 4 years, the
carrying amount of the asset at 31 December 2025 would increase by £580,000
(2024: £973,000) to £8,504,000 (2024: £7,065,000).
These are all definite life intangible assets. They are reviewed for
impairment when there is an indication that the carrying amount may not be
recoverable. The Group has considered whether there were any indicators of
impairment during the year ended 31 December 2025 that would require an
impairment review to be performed. Based on this assessment, no such
indicators were identified, and accordingly no impairment charge has been
recognised in the year. In the prior year, the Group recognised an impairment
charge of £87,000 in respect of intangible assets held in Diaceutics Pte
Limited, following the decision to wind down the Group's Singaporean
subsidiary, which was not expected to generate future cash flows.
8. Trade and other receivables
2025 2024
£000's £000's
Trade receivables 9,872 10,659
Contract assets 9,834 4,155
Other receivables 382 147
Prepayments 1,049 1,082
Derivative financial instruments 119 -
21,256 16,043
Other receivables primarily consist of recoverable taxes and as such are
considered to have low credit risk.
Trade receivables are non-interest bearing, are generally on 90-day terms and
are shown net of a provision for impairment. Management's assessment was that
the trade receivables are fully recoverable except for the specific provision
netted against the trade receivables balance of £nil (2024: £189,000).
The maximum exposure to credit risk is the carrying value of each class of
receivables and cash and cash equivalents. The Group does not hold any
collateral as security.
Most of the Group's customers are large pharma; we do not foresee any credit
difficulties within the customer base. The age profile of the trade
receivables and contract assets are as follows:
Total 0-30 days 31-60 days 61-90 days >90 days
£000's £000's £000's £000's £000's
2025 19,706 14,160 2,477 2,363 706
2024 14,814 14,610 186 115 (97)
The Group's contract assets as at the statement of financial position date are
expected to be invoiced and received in the following year. The maturity
period of these assets were less than 12 months, and given their nature, the
expected credit loss allowance recognised in the period against these assets
was £Nil (2024: £Nil).
The following table shows the movement in contract assets:
2025 2024
£000's £000's
Contract assets recognised at start of the year 4,155 2,402
Revenue recognised in prior year that was invoiced in the current year (4,155) (2,402)
Amounts recognised in revenue in the current year that will be invoiced in 9,834 4,155
future years
Balance at the end of the year 9,834 4,155
The carrying amount of trade and other receivables are denominated in the
following currencies:
2025 2024
£000's £000's
UK sterling 1,272 873
Euro 144 219
US dollar 19,840 14,800
Singapore dollars - 151
21,256 16,043
The maximum exposure to credit risk is the carrying value of each class of
receivables and cash and cash equivalents. The Group does not hold any
collateral as security.
9. Trade and other payables
2025 2024
£000's £000's
Creditors: falling due within one year
Trade payables 1,537 1,217
Accruals 5,816 5,048
Other payables 53 66
Derivative financial instruments 38 477
Other tax and social security 415 466
Contract liabilities 313 237
Deferred grant income 82 100
8,254 7,611
Contract liabilities of £313,000 (2024: £237,000) which arise in respect of
amounts invoiced during the year for which revenue recognition criteria have
not been met by the year-end. The Group's contracts with customers are
typically less than one year in duration and any contract liabilities would be
expected to be recognised as revenue in the following year.
The following table shows the movement in contract liabilities:
2025 2024
£000's £000's
Contract liabilities recognised at start of the year 237 305
Amounts invoiced in prior year recognised as revenue in the current year (237) (305)
Amounts invoiced in the current year which will be recognised as revenue in 313 237
the later years
Balance at the end of the year 313 237
The carrying amount of trade and other payables are denominated in the
following currencies:
2025 2024
£000's £000's
UK sterling 3,461 5,020
Euro 204 642
US dollar 4,583 1,935
Singapore dollar 4 12
Other 2 2
8,254 7,611
10. Equity share capital
2025 2024
£000s £000s
Authorised, allotted, called up and fully paid
84,912,435 (2024: 84,773,888) Ordinary shares of £0.002 each 170 170
170 170
During the year, the Company issued ordinary shares pursuant to share
incentive schemes.
Treasury shares
Treasury shares are shares in Diaceutics PLC that are held by the Diaceutics
Employee Share Trust for the purpose of issuing shares under the Diaceutics
PLC SIP scheme. Shares issued to employees are recognised on a first in, first
out basis.
Details Number of shares £000's
2025 2024 2025 2024
Closing balance 252,063 252,063 312 312
All ordinary shares rank pari passu in all respects including voting rights
and the right to receive all dividends and other distributions, if any,
declared, made or paid in respect of ordinary shares.
Reserves
On 25 January 2024 the warrant holder exercised their remaining 177,915
warrant shares at a price of £0.76 per share. No further warrant shares
remain outstanding. The total share premium after the warrant shares were
issued was £37,261,000. This balance was cancelled as part of the capital
reduction on 4 November 2024.
Translation reserve: This reserve records foreign exchange differences on
translation of foreign operations.
11. Board approval
This announcement was approved by the Board of Directors of Diaceutics plc on
25 May 2026.
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