REG - Niox Group PLC - INTERIM RESULTS
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RNS Number : 2787B Niox Group PLC 30 September 2025
NIOX GROUP PLC
("NIOX" or the "Company"
and, together with its subsidiaries, the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
Oxford, UK - 30 September 2025: NIOX Group plc (AIM: NIOX), a company engaged
in the design, development, and commercialisation of medical devices for the
diagnosis, monitoring and management of asthma and COPD, today announces its
unaudited interim results for the six months ended 30 June 2025 ("H1 2025").
Financial highlights
· Revenue growth of 20% (21% on a constant currency basis) to £25.2
million (H1 2024: £21.0 million).
· Clinical(1) revenue growth of 8% (9% on a constant currency basis) to
£20.0 million (H1 2024: £18.5 million).
· Research(2) revenue up 108% (108% on a constant currency basis) to
£5.2 million (H1 2024: £2.5 million), driven by unforecasted increases in
clinical trial activity using FeNO testing for asthma and COPD.
· Adjusted EBITDA(3) of £9.2 million up 30% (H1 2024: £7.1 million),
reflecting strong operational leverage driven by higher sales and a broadly
flat cost base.
· Adjusted EBITDA margin 36.5% (H1 2024: 33.8%).
· Adjusted basic earnings per share of 2.26p up 31% (H1 2024: 1.73p).
· Cash generated from operations of £7.0 million (H1 2024: £6.0
million).
· Strong balance sheet with cash of £11.8 million as of 30 June 2025
(30 June 2024: £21.5 million, before £21.0 million returned by way of tender
offer, 31 December 2024: £10.9 million), notwithstanding the payment of a
£5.0 million dividend in June 2025. Cash at 31 August 2025: £13.2 million.
Financial progress
H1 2025 H1 2024
£m £m
Revenue 25.2 21.0
Gross margin 70% 72%
Total expenditure(4) (8.5) (8.1)
Adjusted EBITDA(3) 9.2 7.1
Adjusted EBITDA margin 36.5% 33.8%
Operating profit 5.8 4.2
Profit before tax 5.9 4.4
Profit for the financial period 5.9 4.4
Cash at period end 11.8 21.5
(1) Clinical revenue represents sales to physicians and hospitals for use in
clinical practice.
(2) Research revenue is from pharmaceutical companies and contract research
organisations (CROs) for use in clinical studies.
(3) Earnings before interest, tax, depreciation, amortisation and share-based
payment expenses. See note 12 for reconciliation.
(4) Excludes depreciation, amortisation and share-based payment expenses. See
note 12 for reconciliation.
Operational highlights
· Continued adoption and increased penetration of FeNO testing as
part of routine practice globally, supported by new NICE guidelines in the UK,
increased tender wins in China and expansion into Japanese community clinics.
· A final dividend for the financial year ended 31 December 2024 of
1.25 pence per share (equating to a return of cash of £5.0 million) was paid
on 16 June 2025.
· Development of our next-generation device, the NIOX PRO®, is
progressing well and remains on track for initial launch in late 2025.
Jonathan Emms, NIOX's Chief Executive, said: "NIOX has delivered another
excellent half year, with revenues up 20% to £25.2 million and adjusted
EBITDA up 30% to £9.2 million. Both the clinical and research businesses
performed strongly, with research sales more than doubling, significantly
exceeding the forecasts provided by the CROs. This surge in demand has been
met effectively thanks to the exceptional support of our supply chain
partners. Meanwhile, our core clinical business continues to benefit from high
levels of recurring revenue.
Trading in July and August has continued on a strong trajectory, and we remain
debt-free, with £13.2 million of cash as of 31 August 2025, enabling us to
invest in future growth while supporting our progressive dividend policy.
Given the strong performance of our research business, we are comfortably in
line with revenue and adjusted EBITDA consensus expectations for 2025. We
remain well-positioned to deliver sustained revenue growth, strong cash
generation and attractive shareholder returns in the years ahead."
Contacts
NIOX Group plc +44 (0) 3303 309 356
Jonathan Emms, Chief Executive Officer
Sarah Duncan, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Joint Broker) +44 (0) 20 7496 3000
Jen Boorer / James Fischer / James Todd
About NIOX
Our mission is to improve asthma diagnosis, monitoring and management of both
asthma and COPD by providing greater patient access to FeNO testing. Asthma
and COPD are two of the biggest healthcare issues globally, with more than 600
million sufferers combined, many of whom are undiagnosed or are misdiagnosed.
NIOX is engaged in the design, development, and commercialisation of medical
devices for the measurement of FeNO, a precise biomarker for Type-2
inflammation, which is present in asthma and COPD. Our market-leading device,
NIOX VERO®, is increasingly recognised by healthcare professionals as an
important tool to improve the diagnosis, monitoring and management of asthma
and COPD. 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.
OPERATING REVIEW
Introduction
NIOX delivered a strong performance in the first half of 2025, with revenues
increasing by 20% (21% at constant currency) to £25.2 million (H1 2024:
£21.0 million). Adjusted EBITDA grew by 30% to £9.2 million (H1 2024: £7.1
million), reflecting both top-line growth and improved operating efficiency.
Business Review
NIOX remains the market leader in point-of-care FeNO testing for the
diagnosis, monitoring and management of asthma and COPD. The NIOX VERO®
device is approved and reimbursed in most major markets globally.
Clinical sales, comprising sales to physicians and hospitals for clinical use,
grew by 8% (9% at constant currency) to £20.0 million (H1 2024: £18.5
million). Recurring revenues from consumables used in routine FeNO testing
continue to account for over 90% of clinical sales, supporting high revenue
visibility and a resilient business model.
Growth was geographically broad-based. On a constant currency basis:
· APAC sales were up 10%, supported by continued strong demand in
Japan and China.
· EMEA sales grew by 8%, driven by our continued focus on Primary
Care and new customer education initiatives in the UK.
· Americas sales rose by 7%, with untapped potential in the US
market representing a significant growth opportunity.
Our experience consistently shows that testing volumes are highest in markets
with the greatest FeNO awareness. Accordingly, we remain committed to
supporting ongoing education initiatives and local partnerships to raise
awareness and adoption.
Research sales are derived from pharmaceutical companies and contract research
organisations (CROs) using NIOX® for FeNO testing in clinical studies. These
sales more than doubled in the period to £5.2 million (H1 2024: £2.5
million) due to increased clinical trial activity involving FeNO testing for
both asthma and COPD, which was not forecasted by the CROs. Research revenues
can fluctuate as demand is ultimately determined by pharmaceutical companies'
investment in clinical trials.
Strategic Focus
In the US, we are focused on accelerating the penetration of FeNO testing
through a revised go-to-market strategy. Historically, our reliance on
external sales partners has not delivered the desired results. To address
this, we are establishing a small direct sales capability. Under this hybrid
model, a dedicated direct sales team will target high-priority geographies and
customer segments, while lower-priority areas will continue to be supported by
e-marketing initiatives and carefully selected external partners. Alongside
this, our existing inside sales team will focus on supporting existing
customers and driving growth in recurring revenues. This NIOX-led, focused
approach is expected to deliver more consistent growth and is a key strategic
step.
Investments
The development of our next-generation clinical device, the NIOX PRO®,
progressed well during this period. We previewed the device at the European
Respiratory Society conference in September, and we were encouraged by the
positive feedback we received. We remain on track for an initial commercial
launch in late 2025.
Capitalised development expenditure for the NIOX PRO® in H1 was £0.7 million
(H1 2024: £0.2 million), bringing the cumulative spend to date to £1.6
million. Total investment in the development of this device is expected to be
approximately £2.5 million, with the majority of costs incurred by the end of
2025.
Separately, we plan to invest £0.5 million in the second half of the year to
continue the early-stage development of MyNO®, our home-use FeNO device.
These costs will be expensed in the income statement in the period as planned,
as costs cannot be capitalised until technical feasibility is demonstrated.
While MyNO® is not expected to generate near-term revenue, it represents a
longer-term opportunity aligned with the growing trend toward home monitoring.
To support future sensor demand and strengthen supply chain resilience, we
previously signed a Letter of Intent with our sensor manufacturer to invest in
expanded manufacturing capacity. Preparatory work is currently in progress,
and we anticipate incurring capital expenditure of approximately £1.0 million
in 2026.
Beyond Air
Under the existing agreement, NIOX is entitled to receive a 5% royalty on net
sales of Beyond Air's LungFit® PH device in the United States, up to a
maximum of $6.0 million. Royalties began accruing in Q4 2024 and are expected
to build steadily as product adoption increases. Royalties earned in the
period amounted to £0.1 million (H1 2024: £nil).
Outlook
Trading during July and August continued ahead of management expectations,
driven in particular by strong research sales.
As of 31 August 2025, the Group held a cash balance of £13.2 million and
remained debt-free. Strong cash generation continues to support the Group's
progressive dividend policy. The Board remains committed to returning excess
cash to shareholders in the medium term while continuing to invest in future
growth and product innovation.
The Board expects results for the full year to be comfortably in line with
current revenue and adjusted EBITDA consensus expectations. With over 90% of
the Group's revenues denominated in currencies other than Sterling, exchange
rate movements may cause reported revenue growth rates at actual exchange
rates to differ from those at constant currency. However, the impact on EBITDA
remains minimal due to the natural hedging between revenue and cost bases
across regions
Looking forward, the Group remains committed to driving sustainable growth in
its core clinical business, which remains the main revenue and profit driver.
In the US, the Group is implementing changes to its go-to-market strategy.
This initiative will involve a transition period through the remainder of
2025, with a more focused approach delivering benefits in late 2026. As
previously reported, and despite continued momentum, the visibility of future
research demand remains limited.
The Group is well-positioned to deliver sustained revenue growth, strong cash
generation and attractive shareholder returns in the years ahead.
Jonathan Emms
Chief Executive Officer
FINANCIAL REVIEW
The first half of 2025 marked another period of strong performance for NIOX,
driven by sustained demand for FeNO testing. Continued uptake by our customers
has supported robust revenue growth and a corresponding increase in adjusted
EBITDA.
Six months ended Six months ended Twelve months
30 June 2025 30 June 2024 ended
31 December 2024
£m £m £m
Revenue 25.2 21.0 41.8
Cost of sales (7.5) (5.8) (11.6)
Gross profit 17.7 15.2 30.2
Gross margin 70% 72% 72%
Research and development costs (1.2) (1.2) (2.5)
Sales and marketing costs (5.8) (5.7) (11.2)
Administrative expenses (4.9) (4.1) (8.8)
Adjusted EBITDA(1) 9.2 7.1 13.8
Operating profit 5.8 4.2 7.7
Other losses (0.1) (0.2) (0.6)
Other income 0.1 - -
Net finance income 0.1 0.4 0.7
Profit before tax 5.9 4.4 7.8
Taxation - - (4.4)
Profit for the financial period from continuing operations 5.9 4.4 3.4
Profit for the financial period from discontinued operations(2) - - 0.3
Profit for the financial period 5.9 4.4 3.7
Cash and cash equivalents 11.8 21.5 10.9
(1) Earnings before interest, tax, depreciation, amortisation and share-based
payment expenses. Adjusted EBITDA reconciles to operating profit as shown in
note 12.
(2) On 9 April 2020, the Group announced that the development and
commercialisation agreement with AstraZeneca was terminating and as such, the
results of the COPD business are classified as a discontinued operation.
Revenue
NIOX® revenues for the period were £25.2 million (H1 2024: £21.0 million),
which include clinical sales of £20.0 million (H1 2024: £18.5 million) and
research sales of £5.2 million (H1 2024: £2.5 million). NIOX® clinical
revenue represents sales to physicians and hospitals for use in clinical
practice, while research revenue is from pharmaceutical companies and contract
research organisations (CROs) for use in clinical studies.
A significant portion of the increase in NIOX® revenue was associated with
the growth in research sales due to increased clinical trial activity
involving FeNO testing for both asthma and COPD. The increase in clinical
revenue is attributable primarily to increased testing volumes in Japan and
China.
Gross profit
Gross profit on NIOX® sales was £17.7 million (H1 2024: £15.2 million),
with a gross margin of 70% (H1 2024: 72%).
Gross margin was lower than the prior period due to a higher proportion of
lower margin, device-heavy research sales.
Administrative expenses
Administrative expenses increased to £4.9 million (H1 2024: £4.1 million)
primarily due to higher labour costs, plus one-off costs associated with the
withdrawn Keensight bid of £0.3 million.
Earnings per share
Basic profit per share for the period was 1.43p (H1 2024: 1.04p) and diluted
profit per share for the period was 1.39p (H1 2024: 0.97p) reflecting a profit
for the period of £5.9 million (H1 2024: £4.4 million).
Excluding the impact of depreciation, amortisation and share-based payment
expenses, adjusted basic profit per share for the period was 2.26p (H1 2024:
1.73p) reflecting an adjusted profit for the period of £9.3 million (H1 2024:
£7.3 million). See note 6.
Statement of financial position
Net assets as at 30 June 2025 increased to £64.4 million (31 December 2024:
£59.5 million) largely as a result of lower current liabilities and a higher
cash balance.
Current liabilities as at 30 June 2025 were £6.0 million (31 December 2024:
£8.1 million). The decrease is mainly due to lower trade and other payables,
particularly a reduction in accruals following the payment of annual bonuses.
Cash flow
The Group's cash position (including cash and cash equivalents) increased from
£10.9 million as at 31 December 2024 to £11.8 million as at 30 June 2025.
The Group has no debt.
Cash generated from operations during the period aggregated £7.0 million (H1
2024: £6.0 million), of which £nil (H1 2024: £0.9 million) was used in
discontinued operations. The increase in cash generation is due to the
increased profitability of the Group.
A dividend totalling £5.0 million (H1 2024: £4.2 million) was paid to
shareholders in the period.
Exchange differences on cash and cash equivalents arose as a result of the
translation of foreign currency balances at the beginning and end of the
relevant period. The exchange loss for the period was £0.2 million (H1 2024:
£0.1 million).
Sarah Duncan
Chief Financial Officer
PRINCIPAL RISKS AND UNCERTAINTIES
NIOX has considered the principal risks and uncertainties facing the Group for
the first six months of 2025 and does not consider them to have changed
materially from those set out on pages 32 to 33 of the 2024 annual report and
accounts, which is available on the Group's website. A summary of these risks
and uncertainties is as follows:
Cyber security
If the Group fails to sufficiently detect, monitor, or respond to
cyber-attacks against its systems, this may result in disruption of service,
compromise of sensitive data, financial loss and reputational damage.
Supply Chain
The Group relies on third parties for the supply of key materials, finished
products and services, including shipping. Some materials may only be
available from one source, and regulatory requirements may make substitution
costly and time-consuming.
Geopolitical developments such as trade disputes, tariffs, sanctions or
regional instability may impact these risks by disrupting markets, restricting
the movement of goods and services, or increasing costs.
Commercial success
The Group's competitors, some of whom have considerably greater financial and
human resources, may develop more effective products, launch similar products
at a lower price or be able to compete more effectively in the markets
targeted by the Group.
The Group may face issues selling its products if there is no payer coverage
or inclusion of these products by health insurance schemes, or if large payers
that currently cover FeNO testing shift to a negative coverage policy.
Compliance with healthcare regulations
The Group must comply with complex regulations in relation to the marketing of
its devices. These regulations are strictly enforced. Failure by the Group (or
its commercial partners) to comply with relevant legislation and regulations
in the countries in which it operates may result in criminal and civil
proceedings against the Group.
Foreign exchange fluctuations
Foreign exchange fluctuations may adversely affect the Group's results and
financial condition. The Group records its transactions and prepares its
financial statements in British pound sterling, but a significant proportion
of its cash flows are in United States dollars, Swedish krona, euros and
Chinese yuan.
Staff retention
Failure to attract, retain and develop people could lead to a lack of critical
skills, knowledge and experience, which could hinder both daily operations and
growth potential.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended Six months ended Twelve months ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Notes £m £m £m
Continuing operations
Revenue from contracts with customers 3 25.2 21.0 41.8
Cost of sales (7.5) (5.8) (11.6)
Gross profit 17.7 15.2 30.2
Research and development costs (1.2) (1.2) (2.5)
Sales and marketing costs (5.8) (5.7) (11.2)
Administrative expenses (4.9) (4.1) (8.8)
Operating profit 3 5.8 4.2 7.7
Other losses (0.1) (0.2) (0.6)
Other income 4 0.1 - -
Finance costs (0.1) (0.1) (0.2)
Finance income 0.2 0.5 0.9
Profit before tax 5.9 4.4 7.8
Taxation - - (4.4)
Profit from continuing operations 5.9 4.4 3.4
Profit from discontinued operations (attributable to equity holders of NIOX 5 - - 0.3
Group plc)
Profit for the period 5.9 4.4 3.7
Other comprehensive income (expense) / income
Items that may be subsequently reclassified to profit or loss
Exchange differences on translation of foreign operations (2.9) 1.7 (4.2)
Other comprehensive (expense) / income for the period, net of tax (2.9) 1.7 (4.2)
Total comprehensive income / (expense) for the period 3.0 6.1 (0.5)
Earnings per share attributable to owners of the parent during the period
(expressed in pence per share)
Six months ended Six months ended Twelve months ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Basic earnings per share Pence Pence Pence
Basic earnings per share for profit from continuing operations 6 1.43 1.04 0.81
Basic earnings per share for profit for the period 6 1.43 1.04 0.88
Diluted earnings per share Pence Pence
Diluted earnings per share for profit from continuing operations 6 1.39 0.97 0.76
Diluted earnings per share for profit for the period 6 1.39 0.97 0.83
The notes below are an integral part of these condensed interim consolidated
financial statements.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
Notes £m £m £m
Assets
Non-current assets
Property, plant and equipment 0.4 0.3 0.3
Right-of-use assets 1.1 0.8 1.4
Goodwill 4.5 4.4 4.3
Intangible assets 23.8 25.3 23.5
Deferred tax assets 8 18.8 22.6 17.8
48.6 53.4 47.3
Current assets
Inventories 4.0 4.1 4.0
Trade and other receivables 7 6.6 8.5 6.2
Cash and cash equivalents 11.8 21.5 10.9
22.4 34.1 21.1
Total assets 71.0 87.5 68.4
Equity and liabilities
Share capital 0.3 0.3 0.3
Share premium 0.2 0.1 0.2
Other reserves 19.6 16.0 15.6
Retained earnings 44.3 65.4 43.4
Total equity 64.4 81.8 59.5
Liabilities
Non-current liabilities
Lease liabilities 0.6 0.3 0.8
0.6 0.3 0.8
Current liabilities
Trade and other payables 9 5.4 4.8 7.4
Lease liabilities 0.6 0.6 0.7
6.0 5.4 8.1
Total liabilities 6.6 5.7 8.9
Total equity and liabilities 71.0 87.5 68.4
The notes below are an integral part of these condensed interim consolidated
financial statements.
Jonathan
Emms
Sarah Duncan
Chief Executive
Officer
Chief Financial Officer
NIOX Group
plc
NIOX Group plc
Registered number: 05822706
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended Six months ended Twelve months ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 10 7.0 6.0 17.4
Interest paid (0.1) (0.1) (0.1)
Corporation tax paid (0.1) - (0.1)
Net cash generated from operating activities 6.8 5.9 17.2
Cash flows from investing activities
Payments for property, plant and equipment - (0.1) -
Payments for intangible assets (0.7) (0.2) (1.0)
Net cash used in investing activities (0.7) (0.3) (1.0)
Cash flows from financing activities
Interest received 0.2 0.4 0.8
Principal element of lease payments (0.2) (0.2) (0.5)
Dividends paid (5.0) (4.2) (4.2)
Proceeds received from exercise of share options - 0.1 0.1
Acquisition of own shares - - (21.0)
Share buy-back transaction costs - - (0.3)
Net cash used in financing activities (5.0) (3.9) (25.1)
Net increase in cash and cash equivalents 1.1 1.7 8.9
Cash and cash equivalents at 1 January 10.9 19.9 19.9
Effects of exchange rate changes on cash and cash equivalents (0.2) (0.1) (0.1)
Cash and cash equivalents at end of period 11.8 21.5 10.9
The notes below are an integral part of these condensed interim consolidated
financial statements.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. General information
NIOX Group plc is a public company limited by shares which is listed on the
Alternative Investment Market (AIM) and incorporated and domiciled in the
United Kingdom. The Company is resident in England and the
registered office is Magdalen Centre, 1 Robert Robinson Ave, The Oxford
Science Park, Oxford, OX4 4GA.
The condensed consolidated interim financial statements were approved for
issue on 29 September 2025.
The condensed consolidated interim financial statements have not been audited
or reviewed. The condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. Statutory accounts for NIOX Group plc for the year ended 31 December
2024 were approved by the Board of Directors on 31 March 2025 and delivered to
the Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement under section 498 of the Companies Act 2006.
Basis of preparation
This condensed consolidated interim financial report for the period ended 30
June 2025 has been prepared in accordance with Accounting Standard IAS 34
Interim Financial Reporting, except for:
· A statement of changes in equity has not been presented; and
· The deferred tax asset has not been revalued.
The interim report does not include all the notes typically included in an
annual financial report. Accordingly, this report is to be read in conjunction
with the annual report and accounts for the year ended 31 December 2024 and
any public announcements made by NIOX Group plc during the interim reporting
period.
Going concern
In assessing the appropriateness of the going concern assumption, the Board
has considered the availability of funding alongside the possible cash
requirements of the Group and Company. After due consideration, the directors
have concluded that there is a reasonable expectation that the Group has
adequate resources to continue in operational existence for at least 12 months
from the date of this report.
Accounting policies
The accounting policies adopted are consistent with those of the previous
financial year and the corresponding interim reporting period.
Use of estimates and assumptions
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, 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 that applied
to the annual financial statements for the year ended 31 December 2024.
Financial instruments
The Group's financial instruments comprise cash and cash equivalents,
receivables and payables arising directly from operations, and derivatives.
The directors consider that the fair values of the Group's financial
instruments do not differ significantly from their carrying values.
2. Financial and capital risk management
The condensed interim financial statements do not include all financial and
capital risk management information and disclosures required in the annual
financial statements; they should be read in conjunction with the Group's
annual report and accounts for the year ended 31 December 2024.
The majority of operating costs are denominated in British pound sterling,
United States dollar, Swedish krona, euro and Chinese yuan. Foreign exchange
risk arises from future commercial transactions and recognised assets and
liabilities. The directors expect foreign exchange volatility to continue to
affect the Group's results, and the resulting impact will be assessed in the
annual report.
3. Operating segments
The chief operating decision-maker, the Chief Executive Officer, examines the
Group's performance from a product perspective and has identified one
reportable segment in the continuing business:
- NIOX® relates to the portfolio of products used to improve asthma
and COPD diagnosis, monitoring and management by measuring fractional exhaled
nitric oxide (FeNO).
The COPD business has been classified as a discontinued operation. Information
about this discontinued segment is provided in note 5.
The table below presents operating loss information regarding the Group's
operating segments for the periods ended 30 June 2025 and 2024, and the year
ended 31 December 2024. Only the results for the Group's continuing activities
are included to aid comparison.
NIOX® Head office Total
£m £m £m
Six months ended 30 June 2025
Revenue 25.2 - 25.2
Operating profit / (loss) from continuing operations 7.7 (1.9) 5.8
Six months ended 30 June 2024
Revenue 21.0 - 21.0
Operating profit / (loss) from continuing operations 6.1 (1.9) 4.2
Twelve months ended 31 December 2024
Revenue 41.8 - 41.8
Operating profit / (loss) from continuing operations 12.6 (4.9) 7.7
There were no sales between the segments in either reporting period.
( )
4. Other income
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
£m £m £m
Royalty income 0.1 - -
Total other income 0.1 - -
Other income relates to royalty income payable by Beyond Air which is 5% of
the net sales of the LungFit® PH device.
5. Discontinued operations
On 9 April 2020, an agreement was signed to hand back the Tudorza® and
Duaklir® licences to AstraZeneca, and as such, the results of the COPD
operating segment are reported as a discontinued operation. There were no
assets or liabilities classified as held for sale in relation to the
discontinued operation.
Financial information relating to the discontinued operation is set out below:
Profit for the period
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
£m £m £m
Revenue - - 0.3
Profit from discontinued operations - - 0.3
Cashflow - (0.9) (0.8)
Net cash outflow from operating activities
Net cash used in discontinued operations - (0.9) (0.8)
Revenue is recognised when there is a revision to the rebate accrual based on
information and claims received during the period, as well as forward-looking
assumptions regarding the value of claims expected to be received in future
financial periods.
No new information has been received that would warrant changes to the
existing rebate accrual, which remains at £0.1 million (31 December 2024:
£0.1 million). No rebate claims have been received in the current period, and
only trivial claims have been received since December 2023.
A cash outflow occurs when there is a settlement of contractual liabilities
primarily relating to rebates that were accrued at the time the business was
discontinued. There was no cash outflow from discontinued operations in H1
2025 (H1 2024: £0.9 million).
6. Earnings per share
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
Basic earnings per share
Pence Pence Pence
From continuing operations 1.43 1.04 0.81
From discontinued operations - - 0.07
Total basic earnings per share attributable to the ordinary equity holders of 1.43 1.04 0.88
the Company
Diluted earnings per share
Pence Pence Pence
From continuing operations 1.39 0.97 0.76
From discontinued operations - - 0.07
Total diluted earnings per share attributable to the ordinary equity holders 1.39 0.97 0.83
of the Company
Reconciliation of earnings used in calculating earnings per share £m £m £m
Basic and diluted earnings per share
Profit attributable to the ordinary equity holders of the Company used in
calculating basic and dilutive earnings per share:
From continuing operations 5.9 4.4 3.4
From discontinued operations - - 0.3
Profit used as the basis of calculating basic and diluted earnings per share 5.9 4.4 3.7
The earnings used in calculating basic and diluted earnings per share are the
same.
Adjusted basic earnings per share eliminates depreciation, amortisation and
share-based payment expenses.
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
Pence Pence Pence
Adjusted basic earnings per share
From continuing operations 2.26 1.73 2.27
From discontinued operations - - 0.07
Total adjusted basic earnings per share attributable to the ordinary equity 2.26 1.73 2.34
holders of the Company
Reconciliation of earnings used in calculating adjusted earnings per share £m £m £m
Basic and diluted earnings per share
Profit attributable to the ordinary equity holders of the Company used in
calculating basic and dilutive earnings per share:
From continuing operations 5.9 4.4 3.4
From discontinued operations - - 0.3
Add back:
Depreciation 0.3 0.2 0.5
Amortisation 1.8 1.9 3.7
Share-based payment expenses 1.3 0.8 1.9
Adjusted profit used as the basis of calculating adjusted basic earnings per 9.3 7.3 9.8
share
Weighted average number of shares No. No. No.
Weighted average number of ordinary shares used as the denominator in 411,334,961 422,921,155 418,211,904
calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Share options 14,068,199 30,225,299 29,247,771
Deferred shares 383,951 745,116 745,898
Weighted average number of ordinary shares and potential ordinary shares used 425,787,111 453,891,570 448,205,573
as the denominator in calculating diluted earnings per share
7. Trade and other receivables
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Receivable within one year
Trade receivables 5.8 4.6 4.6
Prepayments and accrued income 0.7 0.4 0.7
Other receivables 0.1 3.5 0.9
Total current trade and other receivables 6.6 8.5 6.2
Other receivables in the prior period related to the consideration due from
Beyond Air. The final payment was received from Beyond Air on 23 September
2024.
Under the existing agreement, NIOX is entitled to receive a 5% royalty on net
sales of Beyond Air's LungFit® PH device in the United States, up to a
maximum of $6.0 million. Included in trade and other receivables is £0.1
million (31 December 2024: £nil) relating to royalty income from Beyond Air.
8. Deferred taxation
Intangibles Tax losses Net deferred tax asset
£m £m £m
At 30 June 2024 (6.3) 28.9 22.6
At 31 December 2024 (4.7) 22.5 17.8
At 30 June 2025 (4.7) 23.5 18.8
30 June 2025 30 June 2024 31 December 2024
£m
£m £m
Deferred tax liabilities - - -
Deferred tax assets 18.8 22.6 17.8
Total deferred tax asset 18.8 22.6 17.8
The Group does not review the assumptions relating to the net deferred tax
asset at the half year end. The movement in the deferred tax asset in the
period is due to foreign exchange fluctuations as the asset is denominated in
Swedish krona.
On consolidation, a deferred tax asset in respect of deductible temporary
differences relating to tax losses is recognised to the extent of the relevant
deferred tax liability relating to intangible assets. These balances relate to
the same taxation authority and have therefore been offset.
The Group has the following unrecognised potential deferred tax assets as at:
30 June 2025 30 June 2024 31 December 2024
£m
£m £m
Losses 90.8 90.9 90.8
Total unrecognised deferred tax asset 90.8 90.9 90.8
9. Trade and other payables
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Trade payables 1.1 0.9 1.6
Social security and other taxes 0.3 0.2 0.9
Accruals 3.5 3.2 4.5
Other payables 0.5 0.5 0.4
Total trade and other payables 5.4 4.8 7.4
10. Cash generated from operations
Reconciliation of profit before tax to net cash generated from operations
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
£m £m £m
Profit from continuing operations before tax 5.9 4.4 7.8
Profit from discontinued operations before tax - - 0.3
Profit before tax 5.9 4.4 8.1
Adjustment for:
Finance income (0.2) (0.5) (0.9)
Finance costs 0.1 0.1 0.2
Depreciation charge of right-of-use assets 0.3 0.2 0.5
Amortisation charge of intangible assets 1.8 1.9 3.7
Share-based payment charge 1.3 0.8 1.9
Foreign exchange on non-operating cash flows (0.1) (0.3) 0.7
Changes in working capital:
(Increase)/ decrease in trade and other receivables (0.3) (0.1) 2.8
Decrease in inventories 0.1 0.5 0.5
Decrease in trade and other payables (1.9) (1.0) (0.1)
Cash generated from operations 7.0 6.0 17.4
11. Related party transactions
There have been no new IAS 24 related-party transactions in the first six
months of the current financial year.
12. Reconciliation of alternative performance measures
Total expenditure
Total expenditure excludes depreciation, amortisation and share-based payment
expenses.
Total expenditure is an alternative performance measure, and reconciles to the
consolidated statement of comprehensive income as below:
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
£m £m £m
Research and development costs (1.2) (1.2) (2.5)
Sales and marketing costs (5.8) (5.7) (11.2)
Administrative expenses (4.9) (4.1) (8.8)
Add back:
Depreciation 0.3 0.2 0.5
Amortisation 1.8 1.9 3.7
Share-based payment expenses 1.3 0.8 1.9
Total expenditure (8.5) (8.1) (16.4)
Adjusted EBITDA
Adjusted EBITDA excludes items of income and expenditure which might have an
impact on the quality of earnings, such as share-based payment expenses.
Adjusted EBITDA is an alternative performance measure, and reconciles to
operating profit as below:
Six months ended 30 June 2025 Six months ended 30 June 2024 Twelve months ended 31 December 2024
£m £m £m
Adjusted EBITDA 9.2 7.1 13.8
Depreciation (0.3) (0.2) (0.5)
Amortisation (1.8) (1.9) (3.7)
Share-based payment expenses (1.3) (0.8) (1.9)
Operating profit 5.8 4.2 7.7
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that these condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', except for the areas described in the basis of
preparation section in note 1, and that the interim management report includes
a fair review of the information required, namely:
- an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
- material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report.
The directors are responsible for the maintenance and integrity of the Group's
website www.investors.niox.com (http://www.investors.niox.com) .
The directors of NIOX Group plc are listed on pages 36 to 39 of the 2024
annual report and accounts.
Legislation in the UK governing the preparation and dissemination of interim
financial statements may differ from legislation in other jurisdictions.
On behalf of the Board
Jonathan Emms
Sarah Duncan
Chief Executive Officer
Chief Financial Officer
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