REG - Niox Group PLC - Full Year Trading Update

NioxAnnouncement

16/01/2025 07:00

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RNS Number : 4993T  Niox Group PLC  16 January 2025

 

 

 

NIOX Group plc

 

Full Year Trading Update

 

Strong business model delivering profitable growth

 

Oxford, UK - 16 January 2025: NIOX Group plc ("NIOX", the "Company" or the
"Group"; AIM: NIOX), a medical device company focused on point of care asthma
diagnosis, monitoring and management, today announces the following trading
update for the year ended 31 December 2024.

 

Highlights (unaudited data)

 

·    Revenue growth of approximately14% (approximately 16% on a constant
currency basis) to £41.8m (2023: £36.8m)

 

·   Clinical Revenue growth of approximately 11% to £36.1m (2023:
£32.6m), approximately 14% on a constant currency basis

 

·      Adjusted EBITDA slightly ahead of consensus expectations(1) at
approximately £13.8m (2023: £11.4m)

 

·    Net cash £10.9m as at 31 December 2024 (31 December 2023: £19.9m)
following completion of £21m tender offer in October

 

Unaudited revenues for the year ended 31 December 2024 were up 14% at
approximately £41.8m (2023: £36.8m) with revenues growing by approximately
16% on a constant currency basis.  Given that less than 10% of the Group's
sales are invoiced in sterling, reported revenues are subject to fluctuation
as a result of exchange rates.

 

Clinical revenues were approximately £36.1m (2023: £32.6m) and grew at
approximately 11% (approximately 14% on a constant currency basis).

 

Research revenues were approximately £5.7m (2023: £4.2m) and grew by
approximately 33% (approximately 36% on a constant currency basis).  During
the year, the NIOX Research business benefited from pharmaceutical company
sponsored studies in both asthma and Chronic Obstructive Pulmonary Disease
("COPD"). The role of Type 2 inflammation in COPD is emerging and NIOX was
used to measure FeNO in these studies, given that it is a precise biomarker
for Type 2 inflammation.

 

Gross margins of 72% were consistent with 2023, with recurring test kit
revenues for the Clinical business continuing to represent a high proportion
of Clinical sales at 93% (2023: 92%).

 

Group adjusted EBITDA(2) was approximately £13.8m (2023: £11.4m), slightly
ahead of current consensus market expectations(1), with the improvement in
adjusted EBITDA margin to 33.0% (2023: 31.0%) reflecting continued operational
leverage within the business.

 

The unaudited cash balance at the year end was £10.9m (31 December 2023:
£19.9m) with no bank borrowings.  During the year, the group's continuing
activities generated approximately £14.5m of operating cash flow(3);
discontinued activities had a cash outflow of approximately £0.8m, £21.0m
was returned to shareholders by way of a tender offer, a final dividend of
£4.2m was paid and $4.5m was received from Beyond Air under the terms of the
2021 settlement agreement.

 

 

Ian Johnson, NIOX's Executive Chairman, said: "I am pleased to report
continued strong growth in revenues and profits which were driven by our core
Clinical business. Our manufacturing partner continues to work on the
development of the next generation NIOX Pro® device which is expected to be
launched towards the end of 2025.

 

During 2025 management's focus will continue to be on growing revenues in the
USA, expanding into new healthcare professional channels and developing a
product for home-use.

 

The Board believes that the Company's robust business model will continue to
deliver profitable growth and drive further shareholder value."

 

NIOX expects to release its preliminary results for the year ended 31 December
2024 on 1 April 2025.

 

(1) Source: Factset compiled consensus expectations of £13.5m for FY2024E
EBITDA as at 13 January 2025

(2) Adjusted EBITDA excludes depreciation, amortisation and share option
charges

(3) Excluding the consideration received from Beyond Air.

 

 

 

Contacts

 

 NIOX                                                         Tel: +44 (0) 1865 405 560

 Ian Johnson, Executive Chairman

 Michael Roller, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and joint broker)  Tel: +44 (0) 20 7496 3000

 Jen Boorer / James Fischer / James Todd

 Investec Bank plc (joint broker)                             Tel: +44 (0) 20 7597 5970

 Ben Lawrence / Lydia Zychowska

 

 

About NIOX

Our mission is to improve asthma diagnosis, monitoring and management by
greater patient access to FeNO testing. Asthma is one of the biggest
healthcare issues globally with 340 million sufferers, many of whom are
undiagnosed or are misdiagnosed. The Group is engaged in the design,
development, and commercialisation of medical devices for the measurement of
FeNO, a precise biomarker for asthma. Our market leading device, NIOX VERO®,
is increasingly recognised by healthcare professionals as an important tool to
improve the diagnosis and management of asthma. NIOX VERO® is also the device
of choice by leading clinical research organisations for respiratory studies.

 

NIOX provides products and services via its direct sales organisation and
extensive distributor network in 50 countries. For more information, please
visit www.niox.com (http://www.niox.com)

 

Forward-looking statements

This press release contains certain projections and other forward-looking
statements with respect to the financial condition, results of operations,
businesses and prospects of NIOX. The use of terms such as "may", "will",
"should", "expect", "anticipate", "project", "estimate", "intend", "continue",
"target" or "believe" and similar expressions (or the negatives thereof) are
generally intended to identify forward-looking statements. These statements
are based on current expectations and involve risk and uncertainty because
they relate to events and depend upon circumstances that may or may not occur
in the future. There are a number of factors that could cause actual results
or developments to differ materially from those expressed or implied by these
forward-looking statements. Any of the assumptions underlying these
forward-looking statements could prove inaccurate or incorrect and therefore
any results contemplated in the forward-looking statements may not actually be
achieved. Nothing contained in this press release should be construed as a
profit forecast or profit estimate. Investors or other recipients are
cautioned not to place undue reliance on any forward-looking statements
contained herein. NIOX undertakes no obligation to update or revise (publicly
or otherwise) any forward-looking statement, whether as a result of new
information, future events or other circumstances.

 

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