REG - Kanabo Group PLC - Revenue Growth, Trading and Operational Update

KanaboAnnouncement

04/03/2025 07:00

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RNS Number : 1714Z  Kanabo Group PLC  04 March 2025

Kanabo Group PLC

("Kanabo" or the "Company")

 
2024 Trading Update
Revenue Growth and Operational Progress

London, UK - March 4, 2025 - Kanabo Group PLC ("the Company"), a leader in
digital health services and specialised medicines (including medicinal
cannabis), is pleased to present its 2024 financial performance summary and
highlight the key operational developments observed in January 2025.

2024 Financial Performance

●    Revenue Growth
Total revenue increased by 44% to £1.3 million (2023: £0.9 million). This
achievement is a result of our strategic initiatives.

●    Operating EBITDA Loss
Operating EBITDA loss improved to £1.9 million (2023: £2.2 million). This
positive trend stems from enhanced cost controls and operational efficiencies
throughout the year. We anticipate these gains to continue into Q1 and Q2 of
2025, aided by further process automation. Our target is to reduce G&A and
fixed costs by 20% by the close of 2025.*

Key Strategic Initiatives and Operational Highlights
1. Treat‐It Clinic

●    Strategic Partnerships

56.1% growth in Q1 2025 of the Clinic's patient base with strong growth over
2024, supported by new partnerships with patient‐focused organisations.
These collaborations support expansion of the Clinic's services.

●    Market Demand and Revenue Expansion

Monthly revenue rose significantly from £15,192 in January 2024 to £76,842
in January 2025 - a 406% rise. Demand for both consultations and medication
sales continues to increase.

●    Cost Reduction Measures

General & Administrative (G&A) and fixed costs declined from an
average of £91,449 per month in 2024 to £78,963 in January 2025, marking a
14% reduction. These savings stemmed from streamlined administrative
processes, improved IT management, and ongoing automation efforts.

2. AgriTec Ltd. (Subsidiary Growth)

●    Spanish Consultation Project

A key driver of revenue growth in 2024 was the development of a cannabis
cultivation facility in Spain, by our subsidiary. This initiative generated
£226,000 in revenue, and the Company aims to realise an additional £1
million in 2025 through consulting services. This collaboration also helps
reinforce the Company's supply chain by providing reliable access to
high‐demand medicinal cannabis APIs for the UK and European markets.

3. GP Service - AI Integration

●    AI Enhancing Doctors

The GP Service AI‐driven system "DocNow"
(https://thegpservice.co.uk/docnow/) captures and pre‐organises patient
information before a consultation, providing comprehensive case notes that may
accelerate clinical decisions. By integrating data analysis and automation, a
doctor can increase consultation capacity from 3 to up to 20 sessions per
hour.

●    Strategic B2B Integration

Kanabo Group is in ongoing discussions with a strategic partner for B2B
integration of its AI‐powered triage system, intended to support the
Company's broader telehealth ecosystem and address growing demand for
efficient patient care solutions.

●    AI‐Driven Growth & Unit Economics

Priced at £29 per consultation, the AI‐powered model generates an estimated
33% gross profit per consultation while increasing scalability. Less than 10%
of AI‐triaged cases have so far been rejected by doctors, reflecting the
system's reliability in clinical decision‐making.

Outlook

In the coming quarters, Kanabo plans to diversify the Treat‐It Clinic's
product offerings and explore ways to improve profit margins from cannabis
medication sales. The Company also plans to host a webinar in the upcoming
month to demonstrate its AI triage system, which has already shown encouraging
results.

The core focus is on executing strategic projects and refining operational
efficiency. These efforts are expected to foster sustainable growth and
underscore the potential of AI‐driven technologies to further enhance
services and create additional revenue streams.

The Company continues to review its strategic direction and assess the need
for additional resources to develop commercial AI technology. Therefore, the
Company continues to evaluate its capital needs and alternatives to fund its
capital requirements to ensure that it has the appropriate pathway to fund its
principal divisions towards the commercialisation.

*       Note on Non‐IFRS Measure: Operating EBITDA is a non‐IFRS
measure used by the Company, defined as net income (loss) before interest,
taxes, depreciation, and amortisation, adjusted for certain non‐operating
items that the Company believes do not directly reflect its core operating
performance.

 

Forward‐Looking Statements: This announcement may contain forward‐looking
statements based on current expectations and assumptions. Such statements are
subject to risks and uncertainties that may cause actual results to differ
materially. The Company undertakes no obligation to update or revise
forward‐looking statements except as required by law. Company undertakes no
obligation to update these statements except as required by law.

 

Enquiries:

 

 Kanabo Group plc                                           +44 (0)20 7469 0930

 Avihu Tamir, Chief Executive Officer

 Odelia Vazana , Chief Financial Officer

 Ian Mattioli, Non-Executive Chair of the Board
 Peterhouse Capital Limited (Financial Adviser and Broker)  +44 (0)20 7469 0930

   Guy Miller / Lucy Williams / Charles Goodfellow

About Kanabo Group plc (LSE: KNB) Kanabo Group plc is a digital health company
committed to improving patient care through its specialised technology
platform and treatments, including medicinal cannabis.

Kanabo's NHS-approved telehealth platform, The GP Service, provides video
consultations, online prescriptions, and comprehensive primary care. Treat It,
the Company's specialised clinic, extends these services to chronic pain
management and mental health indications, offering patients access to
secondary care.

With two complementary business divisions, Kanabo delivers end-to-end digital
health solutions, from telehealth consultations and prescriptions to tailored
treatments. Its partially owned subsidiary, Kanabo Agritec Ltd, offers
cultivation consultancy, enabling reliable access to high-quality raw
materials for Kanabo's product range.

Kanabo Group plc remains focused on delivering high-quality medical solutions
that make healthcare more accessible for patients across the UK and beyond.

 

 

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