REG - Niox Group PLC - Final Results
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RNS Number : 7665X Niox Group PLC 24 March 2026
NIOX GROUP PLC
("NIOX" or the "Company" and, together with its subsidiaries, the "Group")
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
Oxford, UK - 24 March 2026: NIOX Group plc (AIM: NIOX), a medical device
company focused on point-of-care FeNO testing for the diagnosis, monitoring
and management of asthma and COPD, today announces its results for the year
ended 31 December 2025.
Financial highlights
· Revenue growth of 17% (15% on a constant currency basis) to
£48.7m (2024: £41.8m).
· Clinical revenue(1) growth of 7% (6% on a constant currency
basis) to £38.6m (2024: £36.1m).
· Research revenue(2) growth of 77% (77% on a constant currency
basis) to £10.1m (2024: £5.7m).
· Adjusted EBITDA(3) up 21% to £16.7m (2024: £13.8m), reflecting
strong operational leverage.
· Strong balance sheet with cash of £19.9m (31 December 2024:
£10.9m) after the payment of a £5.0m dividend in June 2025.
· The Board recommends the payment of a final dividend of 1.55
pence per share (2024: 1.25 pence).
Financial progress
2025 2024
£m £m
Revenue 48.7 41.8
Gross margin 69% 72%
Total expenditure(4) (17.0) (16.4)
Adjusted EBITDA(3) 16.7 13.8
Adjusted EBITDA margin 34% 33%
Operating profit 10.7 7.7
Profit before tax 11.2 7.8
Profit for the year from discontinued operations - 0.3
Profit for the financial year 7.0 3.7
Cash at year end 19.9 10.9
(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.
(4) Excludes depreciation, amortisation and share-based payment expenses.
Operational highlights
· Total number of NIOX(®) FeNO tests sold in the year increased by
9% to 7.2m (2024: 6.6m), indicating strong adoption and recurring usage.
· Achieved 7% growth in the NIOX(®) Clinical device installed
base, driven by increased adoption of FeNO and NIOX(®) by new customers
integrating FeNO testing into routine medical practice across all key clinical
markets.
· Strategically strengthened US commercial capabilities through the
addition of a focused direct sales team, complementing existing distribution
partners and sales channels to accelerate NIOX(®) installed base growth.
· Delivered record Research business sales during the year, while
simultaneously growing the evidence base for FeNO beyond asthma and into COPD.
· Successfully introduced the new, next generation NIOX PRO(®)
device, with the first sale in December 2025.
· Initiated the early-stage development of the home-use device, the
NIOX MyNO(®).
Post-period end update
· On 5 March 2026, the Japanese Ministry of Health, Labour and
Welfare announced an increase in reimbursement for FeNO testing from JPY 1,000
to JPY 1,450 per test.
· Trading in 2026 financial year has started well.
Ian Johnson, NIOX's Chairman, said: "I am pleased to report that 2025 has been
another excellent year for NIOX. The Clinical business continued to perform
well driven by robust demand and the Research business saw a notable uplift in
revenues, driven by a surge in clinical trials for COPD. This is an exciting
development for the Company and a clear demonstration of the growing evidence
for the use of FeNO beyond asthma.
I am incredibly proud of what NIOX has achieved in the past year. We have
continued to execute our strategy, build momentum in both clinical and
research markets, and strengthen our foundations for sustainable long-term
growth. My thanks go to our management team and all our colleagues worldwide
for their hard work, dedication, and commitment.
With a strong financial position, expanding market opportunities, and
continued innovation, NIOX is well-positioned to deliver further shareholder
value."
Jonathan Emms, NIOX's Chief Executive Officer, said: "2025 was a year of
significant progress for NIOX, both operationally and strategically, marked by
strong revenue growth.
The Clinical business continued to perform well, supported by robust demand
from healthcare providers, record levels of testing during the year, and
further expansion of the NIOX(®) installed base, which increased by 7%
year-on-year. This year saw the highest number of NIOX(®) tests performed,
reflecting both increased utilisation and the growing role of FeNO testing in
routine clinical practice. In the US, sustained engagement with payers has
resulted in approximately 93% of insured lives now having coverage for FeNO
testing, materially supporting adoption and long-term growth.
The Research business benefited from a marked rise in COPD-related clinical
trials, highlighting the importance of FeNO testing and its growing relevance
in COPD diagnosis and management. With approximately 380 million people
affected globally, COPD is a major chronic disease and an underserved area of
respiratory care. The studies conducted on COPD will be published in leading
medical journals, creating a solid evidence base for the use of FeNO testing
and NIOX(®) in managing this condition. This represents an important and
exciting new future opportunity for NIOX in supporting the expanding role of
FeNO testing beyond asthma.
A highlight of the year was the introduction of NIOX PRO(®), the
next-generation FeNO device, at the European Respiratory Society congress in
September. Market-by-market regulatory approvals will occur throughout 2026.
Designed by NIOX, inspired by healthcare professionals, and informed by the
needs of asthma patients worldwide, NIOX PRO(®) offers market-leading
accuracy and reproducibility while enhancing the user experience.
Operationally, we maintained strong cost control and grew cash and
profitability whilst investing strategically in US commercial capabilities and
product development. The NIOX team remained focused on executing and
delivering the Company's strategic mission.
Looking ahead, the FeNO market remains highly attractive. We anticipate
sustained demand for FeNO testing in the Clinical business, driven by the
ongoing global focus on respiratory health, the growing adoption of FeNO
testing in asthma and the expanding body of research into COPD. The Company
has strong foundations in place to capitalise on the FeNO opportunity, and we
are confident in our ability to deliver further growth and shareholder value
in 2026 and beyond."
Contacts
NIOX Tel: +44 (0) 3303 309 356
Jonathan Emms, Chief Executive Officer
Sarah Duncan, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker) Tel: +44 (0) 20 7496 3000
Jen Boorer / James Fischer
The annual report and audited consolidated financial statements will be
available on the Company's website later today. Please visit:
www.investors.niox.com/investors/financial-reports/
About NIOX
Our mission is to improve the 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.
An introductory presentation about the NIOX Group is available at:
www.investors.niox.com/resource/category/presentations/
NIOX provides products and services via its direct sales organisation and
extensive distributor network in more than 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.
BUSINESS REVIEW
A year of strong growth
NIOX is the market leader in point-of-care FeNO testing for the diagnosis,
monitoring and management of asthma.
Group revenue increased year-on-year, with both the Clinical and Research
businesses contributing to growth. Revenues for the year were up 17% (up 15%
on a constant currency basis) to £48.7 million (2024: £41.8 million). EBITDA
margin increased to 34% (2024: 33%).
FeNO testing rates continued to increase across most markets, and total tests
sold in the year across the Clinical and Research businesses increased by 9%
to 7.2 million (2024: 6.6 million).
Clinical sales grew by 7% (6% on a constant currency basis) to £38.6 million
(2024: £36.1 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, versus
the prior year:
· APAC sales were up 5%. China achieved 14% sales growth, a strong
result in a highly competitive market. Continued success in tender processes
highlights the quality and differentiation of the NIOX product portfolio
compared to low-cost competitors. Sales in Japan were adversely affected by a
severe flu season in the second half of the year, as healthcare professionals
focused on administering flu jabs and managing the outbreak. Medical practice
has since returned to normal, and demand for FeNO in Japan remains robust,
reflected in strong sales of NIOX(®) devices to new customers in 2025. In
March 2026, the Japanese Ministry of Health, Labour and Welfare announced a
45% increase in the reimbursement rate to doctors for FeNO testing. This is a
strong endorsement for FeNO testing and will help increase testing volumes and
further reinforce the long-term attractiveness of the Japanese FeNO market.
· EMEA sales grew 6%. UK sales grew 5% on a constant currency basis
for the full year. Strong growth was also recorded across several other
markets, with Belgium, Luxembourg and the Nordics all increasing by 14%, and
Portugal delivering particularly strong growth of 28%.
· Americas sales rose by 7% (compared with 6% growth in the
previous year). The US delivered an impressive 8% growth despite the absence
of a contract sales force during much of 2025 and increased competitive
activity in the market. To support future growth, NIOX strategically
strengthened its US commercial capabilities by adding a focused direct sales
team, complementing existing distribution partners and sales channels to
accelerate expansion of the NIOX® installed base.
Research sales grew by 77% in the period to £10.1 million (2024: £5.7
million). The Research business benefited from an unprecedented level of
pharmaceutical company-sponsored studies in both asthma and COPD. Growth was
underpinned by a marked increase in COPD-related studies, reflecting the
emerging recognition of type 2 inflammation in COPD and the use of FeNO,
measured by NIOX(®), as a precise biomarker. Many of these studies are
expected to be published in leading medical journals, further strengthening
the clinical evidence base and supporting the expanding role of FeNO testing
beyond asthma.
Financial Position
The Group ended the year with a strong balance sheet, net cash of £19.9
million (2024: £10.9 million) after the payment of a £5.0 million dividend
in June 2025 and with no debt. Cash generation remained robust, reflecting the
business's underlying profitability, high level of recurring revenue and
efficient operating model. This financial strength provides the flexibility to
invest in product development, expand commercial reach and deliver long-term
shareholder returns.
Principal Challenges
Today, the awareness and usage of FeNO testing and NIOX(®) amongst
respiratory specialists is relatively high. Most asthmatics are under the care
of primary care doctors, and the awareness and usage of FeNO are significantly
lower than in the specialist community. This means that there is huge,
untapped potential in the FeNO testing market. The primary challenge the
NIOX(®) business faces is increasing awareness and usage of FeNO testing,
particularly among the primary care customer group.
The Company continues to engage with respiratory professionals to promote the
use of FeNO tests in new and underserved customer segments, such as primary
care settings and pharmacies, which provides a significant growth opportunity
for NIOX.
Outlook
NIOX is a highly robust, cash generative, scalable business with best-in-class
technology. The NIOX mission is to improve the diagnosis, monitoring and
management of asthma and COPD by providing patients with greater access to
FeNO testing. Core markets remain large and underserved and offer significant
potential for ongoing organic growth. The Group has a robust strategy in place
to expand the business and generate profitable growth. The emerging evidence
for the use of FeNO in COPD represents a large and exciting incremental future
growth opportunity. The 2026 financial year has started well and we look
forward to the future with confidence.
OPERATING REVIEW
Our Products
The NIOX portfolio now comprises two devices: the established NIOX VERO(®)
and the next-generation NIOX PRO(®). NIOX VERO(®) is approved and reimbursed
in most major markets and is available in more than 50 countries via NIOX's
international network of distribution partners. NIOX continues to set the
standard for point-of-care measurement of FeNO in asthma with COPD set to be a
significant incremental future opportunity.
The Company's NIOX VERO(®) is the market-leading device for measuring FeNO.
This is a non-invasive, point-of-care system which accurately measures the
patient's FeNO level. It is quick, easy to use and reliable. The system
comprises a small portable device and a range of consumables, including
sensors, individual disposable mouthpieces and breathing handles.
NIOX PRO(®) is the Group's next-generation FeNO platform, designed to build
on the proven clinical performance of NIOX VERO(®) while offering enhanced
connectivity, usability, improved portability and advanced connectivity
features, while maintaining the market-leading accuracy and reproducibility
for which NIOX(®) devices are known. The device features an extended shelf
life of up to six years and more compact packaging, reducing waste and
improving supply-chain efficiency for customers. Regulatory submissions are
underway, with approvals expected on a phased basis across key markets.
Market Environment
Asthma remains one of the world's most significant healthcare challenges. The
condition results in approximately 1,000 deaths each day, and many more
patients experience severe exacerbations requiring emergency intervention and
hospital admission. Against this backdrop, the need for accurate, non-invasive
point-of-care diagnostic and monitoring tools to support earlier and more
effective management of airway inflammation continues to grow.
FeNO testing is still early in its lifecycle and has relatively low market
penetration. It is now widely recognised as the gold standard for identifying
and monitoring type 2 inflammation in asthma, providing clinicians with a
fast, reliable biomarker to guide diagnosis and optimise treatment. Increasing
awareness and education remain a key priority for the Group to drive adoption
across healthcare systems worldwide. At the same time, progress continues to
be made in improving reimbursement and insurance coverage; in the US, 93% of
insured lives now have access to FeNO testing, up from 84% in 2024.
Evidence is also building around the potential role of FeNO testing in the
diagnosis, monitoring and management of COPD patients with type 2
inflammation, representing an exciting opportunity for NIOX. Worldwide, 380
million people are estimated to be living with COPD. During the year, the
Company refined its core messaging and promotional content to reflect this
broader clinical positioning and to support the growing research and
professional interest in FeNO's relevance for COPD.
Although awareness and adoption of FeNO testing are increasing, substantial
global potential remains untapped. The Group's commercial strategy therefore
continues to prioritise deeper engagement with respiratory professionals in
new and underserved segments, including primary care and pharmacy settings, to
help embed FeNO testing as a routine part of clinical assessment and ongoing
disease management.
Looking ahead, NIOX anticipates that as FeNO testing becomes further
integrated into professional healthcare, asthma management will increasingly
shift to home settings, mirroring the evolution seen in other chronic
conditions, such as diabetes and hypertension. In preparation for this
long-term trend, the Group is advancing the development of NIOX MyNO(®), a
device specifically designed for home use.
The Opportunity
Asthma
Asthma affects over 340 million people worldwide, and this is predicted to
grow exponentially as countries become more urbanised. In approximately 50% of
cases, asthma is either not diagnosed or is misdiagnosed, which leads to a
delay in asthma patients receiving the care that they need. Following a
diagnosis of asthma, it is essential to regularly monitor the condition to
confirm the effectiveness of treatment and patient adherence.
Asthma is a condition characterised by inflammation of the airways and lungs.
Nitric oxide is produced by type 2 inflammatory cells and can be precisely
measured in exhaled breath, known as FeNO. Measuring FeNO helps medical
professionals assess lung inflammation in asthmatics and is a precise
biomarker of type 2 inflammation. FeNO measurements can increase the
likelihood of a correct diagnosis by up to seven times.
The American Thoracic Society ("ATS") recommends that FeNO testing be part of
the ongoing care of asthmatics and a tool for diagnosing asthma. This is the
latest example from an increasing body of highly credible, evidence-based
medical guidelines worldwide that have recommended FeNO testing as a routine
part of diagnosing and managing asthma. The guidelines are based on a
substantial body of published clinical trials that demonstrate the benefits of
FeNO testing. Measuring FeNO as part of ongoing asthma management has been
shown to decrease asthma exacerbations by 50%.
In 2025, the Global Initiative for Asthma ("GINA") published updated asthma
treatment guidelines that emphasise the role of type 2 inflammation in asthma
and recommend the use of FeNO testing for both diagnosis and ongoing
management.
In the UK, the National Institute of Clinical Excellence ("NICE") published
updated asthma diagnosis, monitoring, and treatment guidelines in December
2024, noting that FeNO testing should be used as the primary diagnostic tool
for children suspected of having asthma and as a joint primary diagnostic tool
for adults.
Further impetus is coming from a new class of biologic anti-inflammatory
medicines for the treatment of type 2 inflammatory asthma. Biologic therapies
are targeted at asthmatics with increased inflammation and, therefore,
elevated FeNO. The cost of these new medicines is high. This means that some
pharmaceutical companies are investing resources to raise awareness and
increase the use of FeNO testing to identify patients most likely to respond
to treatment, as they seek to establish this new class of drugs as an
effective line of therapy.
COPD
NIOX has a well-established position in asthma diagnosis, monitoring, and
management through its market-leading FeNO technology. Emerging clinical
evidence now highlights the role of FeNO in identifying type 2 inflammation
within COPD, a patient group more likely to benefit from targeted
anti-inflammatory treatment, such as inhaled corticosteroids and biologic
medicines. This creates a significant future growth opportunity for NIOX.
NIOX VERO(®) has regulatory approval in most major markets for measuring type
2 inflammation, a pathway that underpins both asthma and a substantial
subgroup of COPD patients. This means that existing NIOX(®) technology can be
readily applied to COPD without the need for new licensing, thereby extending
its clinical utility beyond asthma to a much larger patient population.
NIOX's Research business acts as an important halo for the Clinical business,
with the majority of published studies using NIOX(®) as the device of choice.
By influencing thought leaders and key opinion leaders, this research presence
is expected to drive adoption in the clinical segment as clinicians follow the
guidance of experts. Emerging clinical evidence suggests that FeNO can
identify type 2 inflammation in COPD, enabling more personalised care and
optimised anti-inflammatory medicine. This, in turn, may help lower
exacerbation rates and the associated burden on healthcare systems. FeNO
monitoring in COPD represents a significant new incremental opportunity for
NIOX.
While further clinical adoption and formal guideline inclusion remain future
milestones, NIOX is strongly positioned to capitalise on this opportunity.
With its technology already licensed for type 2 inflammation, a robust
infrastructure, and leadership in FeNO testing, the Company is well-placed to
expand into COPD management and capture growth from this emerging patient
segment.
Strategic Priorities
NIOX remains focused on advancing its mission to improve the diagnosis,
monitoring, and management of asthma and COPD through innovative point-of-care
FeNO testing. The Company's strategic priorities are designed to strengthen
its market leadership, accelerate product development, and drive sustainable
growth.
1) Increasing US FeNO Penetration
Throughout 2025, management made targeted, performance-driven adjustments to
accelerate momentum and ensure NIOX reaches its full potential in the US. As
part of this, the Company implemented a revised go-to-market model.
Historically, relying solely on external sales partners had not yielded the
desired results, prompting the establishment of a small direct sales
capability to work alongside existing distribution partners and sales channels
to accelerate the NIOX(®) installed base growth.
Under this hybrid approach, distributor partners and inside sales and
marketing teams will work together, with a dedicated direct field-based sales
team focused solely on new device installations in high-priority geographies
and customer segments. In parallel, the existing distributors, inside sales
and marketing teams will continue to support current customers and drive
recurring revenue growth. The new field-based sales team will not be deployed
and fully operational until the middle of 2026.
This NIOX-led, targeted approach is designed to deliver more consistent and
scalable growth and represents a key strategic step for the Group in realising
the full potential of the US market.
2) Innovation and Product Development
NIOX PRO(®)
The next-generation FeNO device, the NIOX PRO(®), was introduced as planned
at the European Respiratory Society in September 2025 and received extremely
positive feedback from both customers and distribution partners. The first
sale was made in December 2025. NIOX PRO(®) offers the same accuracy and
reproducibility as NIOX VERO(®) with the additional benefits of enhanced
usability, portability and connectivity. NIOX PRO(®) is fully compatible with
existing consumables.
Development costs totalling £1.3 million have been capitalised in the year
(2024: £0.9 million) in accordance with accounting standards. The aggregate
development costs of the NIOX PRO(®), including tooling, are expected to
total £2.5 million, with £2.2 million already incurred. A few residual
costs are expected in 2026 related to product registration across markets.
NIOX Cloud(®)
To complement the new NIOX PRO(®) device and the future home-use NIOX
MyNO(®) device, the Company is developing NIOX Cloud(®), a cloud-connected
platform that will enable healthcare professionals and patients to access and
manage their NIOX(®) devices data from anywhere. The platform recognises each
customer's device and offers one-tap ordering, allowing users to quickly and
effortlessly request quotes for consumables.
By synchronising data, NIOX Cloud(®) proactively notifies users when
consumables need replenishing or when any support actions require attention,
ensuring a seamless, end-to-end customer experience.
Development of NIOX Cloud(®) is progressing well and remains on track for
launch in the first half of 2026. Total costs are expected to be approximately
£0.3 million and will be incurred during 2026.
NIOX MyNO(®)
Development of NIOX MyNO(®), the home-use FeNO monitoring device, commenced
in 2025. Building on the technology and clinical credibility established by
NIOX, the MyNO(®) device aims to create a whole new home testing market. At
the same time as making FeNO testing more accessible by enabling patients to
measure airway inflammation from home and share results digitally with their
clinicians. Increased FeNO levels are an early indicator of rising airway
inflammation and can signal an impending asthma attack, making timely
monitoring particularly valuable. This approach supports more personalised and
proactive management of asthma, helping to reduce exacerbations, avoid
unnecessary treatment escalations and improve long-term disease control.
The expectation is that the Company will incur approximately £1.5 million of
development costs in 2026, which will be expensed in the income statement
until technical feasibility is determined. To accelerate progress, we have now
engaged an external consultancy firm that previously worked on the development
of NIOX VERO(®) to work alongside our manufacturing partners.
NIOX MyNO(®) is not expected to generate near-term revenue, however, it
represents a longer-term opportunity aligned with the growing trend toward
home monitoring and the increasing integration of remote diagnostic tools into
respiratory care pathways.
3) Driving Adoption and Clinical Education
NIOX is investing in educational initiatives for clinicians, healthcare
providers and patients to ensure broader adoption of FeNO testing in clinical
practice. This includes expanding training programmes, publishing clinical
evidence, and engaging with key opinion leaders in respiratory medicine.
During 2025, NIOX reached 2.6 million healthcare professionals with digital
advertisements and 4 million patients with educational messages about FeNO and
asthma.
With a focus on these strategic priorities, NIOX aims to deliver long-term
value for shareholders, improve patient outcomes, and reinforce its position
as a global leader in FeNO testing.
Summary and outlook
2025 has been a strong year for NIOX. Revenue growth in our Research business
was driven by a surge in clinical trials for COPD, reflecting the expanding
evidence for FeNO beyond asthma.
The successful introduction of NIOX PRO(®), together with the development of
the cloud-connected NIOX Cloud(®) platform, positions NIOX to deliver a
seamless, end-to-end experience for healthcare professionals and their
patients.
Looking ahead, the Company sees significant growth opportunities in the US
market.
2026 has started well, including positive FeNO reimbursement increases in
Japan that further support the adoption of FeNO testing. We are excited for
the future. With a strong financial position, innovative products, and a
committed global team, NIOX is well-placed to execute its strategy, support
customers, and deliver attractive shareholder returns in the years ahead,
including a return of at least 80% of free cash flow to shareholders over the
medium term.
FINANCIAL REVIEW
NIOX's financial performance reflects continued execution of the Group's
strategy, resilient demand for FeNO testing across core markets and
disciplined financial management, resulting in sustained revenue growth,
strong margins and robust cash generation. The Group ended the year in a
strong financial position, providing a solid platform to support continued
long-term growth.
The Group considers its key financial performance indicators to be revenue and
adjusted EBITDA, which the Board uses to assess underlying performance,
operational efficiency and progress against strategic objectives.
2025 2024
£m £m
Revenue 48.7 41.8
Cost of sales (15.0) (11.6)
Gross profit 33.7 30.2
Gross margin 69% 72%
Research and development costs (2.6) (2.5)
Sales and marketing costs (11.4) (11.2)
Administrative expenses (9.0) (8.8)
Adjusted EBITDA(1) 16.7 13.8
Operating profit 10.7 7.7
Other losses (0.3) (0.6)
Other income 0.6 -
Net finance income 0.2 0.7
Profit before tax 11.2 7.8
Taxation (4.2) (4.4)
Profit for the financial year from continuing operations 7.0 3.4
Profit for the financial year from discontinued operations(2) - 0.3
Profit for the financial year 7.0 3.7
Cash and cash equivalents 19.9 10.9
(1) Earnings before interest, tax, depreciation, amortisation and share-based
payment expenses.
(2) On 9 April 2020, the Group announced that the development and
commercialisation agreement with AstraZeneca was terminating. As such, the
COPD business results are classified as a discontinued operation.
Revenue
NIOX(®) revenues for the year were £48.7 million (2024: £41.8 million).
NIOX(®) clinical revenue of £38.6 million (2024: £36.1 million) represents
sales to physicians and hospitals for use in clinical practice and to the
Company's distributors. NIOX(®) research revenue of £10.1 million (2024:
£5.7 million) is from pharmaceutical companies and contract research
organisations (CROs) for use in clinical studies.
A substantial portion of NIOX(®) revenue growth was driven by the Research
business, which benefited from an unprecedented level of pharmaceutical
company-sponsored studies in both asthma and COPD.
Clinical sales grew by 7% during the year, supported by continued adoption of
FeNO testing in clinical practice and sustained demand across the Group's
major markets.
Gross profit
Gross profit on NIOX(®) revenue was £33.7 million (2024: £30.2 million).
Gross margin at 69% (2024: 72%) was lower than the previous year, primarily
due to a higher mix of device-heavy research sales.
Research and development
Research and development expenditure, which includes regulatory, quality
assurance, medical affairs and device development costs, increased marginally
to £2.6 million (2024: £2.5 million), reflecting the investment in the
development of the NIOX MyNO(®) home-use device, which commenced during the
year.
The next-generation FeNO clinical device, the NIOX PRO(®), was introduced
during the second half of the year, and £1.3 million of development costs
were capitalised (2024: £0.9 million).
Sales and marketing
Sales and marketing costs increased to £11.4 million (2024: £11.2 million),
primarily reflecting investment in a direct sales force in the US. Recruitment
started in Q4 2025, and a full-year impact of approximately £1.5 million is
expected in the next financial year.
Administrative expenditure
Administrative expenditure, which includes overheads relating to corporate
functions, centrally managed support functions, and corporate costs, increased
to £9.0 million (2024: £8.8 million), primarily due to one-off costs of
£0.3 million associated with the withdrawn Keensight bid.
Other income
Other income was £0.6 million (2024: £nil), comprising £0.3 million of
royalty income from Beyond Air and a £0.3 million gain on the disposal of
certain legacy assets.
With effect from Q4 2024, the Group is entitled to a royalty of 5% on the net
sales of Beyond Air's LungFit(®) device in the USA, capped at $6.0 million.
In December 2025, the Group received cash proceeds of £0.3 million from the
sale of certain legacy respiratory-related intellectual property and
associated manufacturing equipment acquired as part of the Prosonix Limited
acquisition in 2015. As these assets had previously been written down to a nil
carrying value, the proceeds have been recognised in full as other income as
this was non-recurring.
Taxation
The tax expense for the year was £4.2 million (2024: £4.4 million), of which
£0.1 million (2024 £0.1 million) related to corporation tax payable in
Germany and China, and £4.1 million (2024: £4.3 million) related to deferred
tax charged to the income statement in relation to taxable profits generated
in Sweden, which resulted in the utilisation of brought forward losses during
the period. A deferred tax asset in Sweden had previously been fully
recognised in respect of carried-forward trading losses.
Earnings per share
Basic earnings per share for the year was 1.69p (2024: 0.88p) and diluted
earnings per share for the year was 1.64p (2024: 0.83p), reflecting a profit
after tax of £7.0 million (2024: £3.7 million). The increase in earnings per
share primarily reflects higher operating profitability during the year.
Excluding the impact of interest, tax, depreciation, amortisation and
share-based payment expenses, adjusted basic earnings per share from
continuing operations for the year was 4.03p (2024: 3.23p). See note 9.
Basic earnings per share from continuing operations was 1.69p (2024: 0.81p),
and diluted earnings per share for the year was 1.64p (2024: 0.76p),
reflecting a profit from continuing operations for the financial year of £7.0
million (2024: £3.4 million).
Statement of financial position
The Group's total equity at 31 December 2025 was £67.6 million (2024: £59.5
million).
Inventories increased by £1.0 million, reflecting higher year-end stock of
NIOX VERO(®) mouth filters. These were purchased in bulk ahead of switching
production to the new NIOX PRO(®) design, to ensure continuity of supply into
markets awaiting regulatory approvals. In anticipation of demand for the new
NIOX PRO(®) device, we plan to build a reserve equivalent to approximately
five months' supply.
Other comprehensive expense
Other comprehensive income of £5.5 million (2024: £4.2 million expense)
relates to exchange differences arising from the translation of foreign
operations into British pound sterling. The current year income is largely due
to the strengthening of the Swedish krona against the British pound.
Cash flow
The Group's cash position increased to £19.9 million from £10.9 million at
31 December 2024.
Cash generated from operations during the year amounted to £15.7 million
(2024: £17.4 million). In the previous year, £0.8 million was used in
discontinued operations, and £3.7 million was received from Beyond Air under
the terms of the relevant settlement agreement. Excluding these one-off items,
cash generated from operations increased by £1.2 million year on year.
During the year, a dividend of £5.0 million (2024: £4.2 million) was paid to
shareholders, and £1.3 million (2024: £0.9 million) was invested in the
development of the NIOX PRO(®).
Exchange differences on cash and cash equivalents arose from the translation
of foreign currency balances at the beginning and end of the year. The
exchange loss for the year was £0.1 million (2024: £0.1 million).
Consolidated statement of comprehensive income
for the year ended 31 December 2025
2025 2024
Notes £m £m
Continuing operations
Revenue from contracts with customers 48.7 41.8
Cost of sales (15.0) (11.6)
Gross profit 33.7 30.2
Research and development costs (2.6) (2.5)
Sales and marketing costs (11.4) (11.2)
Administrative expenses (9.0) (8.8)
Operating profit 10.7 7.7
Other losses (0.3) (0.6)
Other income 5 0.6 -
Finance costs 6 (0.2) (0.2)
Finance income 6 0.4 0.9
Profit before tax 11.2 7.8
Taxation 8 (4.2) (4.4)
Profit from continuing operations 7.0 3.4
Profit from discontinued operations (attributable to equity holders of NIOX 7 - 0.3
Group plc)
Profit for the year 7.0 3.7
Other comprehensive income/ (expense)
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations 5.5 (4.2)
Other comprehensive income/ (expense) for the year, net of tax 5.5 (4.2)
Total comprehensive income / (expense) for the year 12.5 (0.5)
Earnings per share attributable to owners of the parent during the year
(expressed in pence per share)
2025 2024
Basic earnings per share Notes Pence Pence
Basic earnings per share for profit from continuing operations 9 1.69 0.81
Basic earnings per share for profit for the year 9 1.69 0.88
Diluted earnings per share
Diluted earnings per share for profit from continuing operations 9 1.64 0.76
Diluted earnings per share for profit for the year 9 1.64 0.83
The above consolidated statement of comprehensive income should be read in
conjunction with the accompanying notes.
Consolidated statement of financial position
as at 31 December 2025
2025 2024
Notes £m £m
Assets
Non-current assets
Property, plant and equipment 0.3 0.3
Right-of-use assets 0.9 1.4
Goodwill 10 4.8 4.3
Intangible assets 23.8 23.5
Deferred tax assets 15.5 17.8
45.3 47.3
Current assets
Inventories 5.0 4.0
Trade and other receivables 6.0 6.2
Cash and cash equivalents 19.9 10.9
30.9 21.1
Total assets 76.2 68.4
Equity
Share capital 0.3 0.3
Share premium 0.3 0.2
Other reserves 11 21.6 15.6
Retained earnings 45.4 43.4
Total equity 67.6 59.5
Liabilities
Non-current liabilities
Lease liabilities 0.5 0.8
0.5 0.8
Current liabilities
Trade and other payables 7.6 7.4
Lease liabilities 0.5 0.7
8.1 8.1
Total liabilities 8.6 8.9
Total equity and liabilities 76.2 68.4
The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.
Consolidated statement of cash flows
for the year ended 31 December 2025
2025 2024
Notes £m £m
Cash flows from operating activities
Cash generated from operations 13 15.7 17.4
Interest paid (0.2) (0.1)
Income taxes paid (0.1) (0.1)
Net cash generated from operating activities 15.4 17.2
Cash flows from investing activities
Proceeds from the sale of intellectual property 0.3 -
Payments for property, plant and equipment (0.2) -
Payments for intangible assets (1.3) (1.0)
Net cash used in investing activities (1.2) (1.0)
Cash flows from financing activities
Interest received 0.4 0.8
Principal element of lease payments (0.6) (0.5)
Dividends paid (5.0) (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 (5.1) (25.1)
Net increase/(decrease) in cash and cash equivalents 9.1 (8.9)
Cash and cash equivalents at 1 January 10.9 19.9
Effects of exchange rate changes on cash and cash equivalents (0.1) (0.1)
Cash and cash equivalents at 31 December 19.9 10.9
The above consolidated statement of cash flows should be read in conjunction
with the accompanying notes.
Consolidated statement of changes in equity
for the year ended 31 December 2025
Share capital Share premium Other reserves(1) Retained earnings Total equity
£m £m £m £m £m
At 1 January 2024 0.3 0.1 18.2 65.2 83.8
Profit for the year - - - 3.7 3.7
Exchange differences on translation of foreign operations - - (4.2) - (4.2)
Total comprehensive (expense)/ income - - (4.2) 3.7 (0.5)
Transactions with owners:
Issue of new shares - 0.1 - - 0.1
Dividends - - - (4.2) (4.2)
Employee share-based payments - - 1.6 - 1.6
Acquisition of own shares - - - (21.0) (21.0)
Share buy-back transaction costs - - - (0.3) (0.3)
At 31 December 2024 0.3 0.2 15.6 43.4 59.5
Profit for the year - - - 7.0 7.0
Exchange differences on translation of foreign operations - - 5.5 - 5.5
Total comprehensive income - - 5.5 7.0 12.5
Transactions with owners:
Issue of new shares - 0.1 - - 0.1
Dividends - - - (5.0) (5.0)
Employee share-based payments - - 0.5 - 0.5
At 31 December 2025 0.3 0.3 21.6 45.4 67.6
(1) Other reserves include share-based payments reserve, translation reserve,
and transactions with non-controlling interests reserve
The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS
1. General information
Basis of preparation
The preliminary announcement has been prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006 and UK-adopted International Accounting Standards. It
does not include all the information required for full annual accounts.
The financial information included in this announcement does not constitute
the Company's statutory financial statements for the years ended 31 December
2025 or 2024 but is derived from those financial statements. Statutory
financial statements for 2024 have been delivered to the registrar of
companies, and those for 2025 will be delivered in due course. The auditors
have reported on those financial statements; their reports were (i)
unqualified (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The announcement for the year ended 31 December 2025 was approved by the Board
for release on 23 March 2026.
The announcement will be published on the Company's website. The maintenance
and integrity of the website is the responsibility of the directors. The work
carried out by the auditors does not involve consideration of these matters.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
2. Operating segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating
resources, assessing performance and making strategic decisions, has been
identified as the Chief Executive Officer.
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 diagnosis, monitoring and management by measuring fractional exhaled
nitric oxide (FeNO).
The COPD business has been classified as a discontinued operation. Information
about the results of this segment is provided in note 7.
The table below presents operating profit or loss information regarding the
Group's operating segments for the years ended 31 December 2025 and 2024. Only
the results for the Group's continuing activities are included to aid
comparison.
Segment operating profit or loss
Year ended 31 December 2025 NIOX(®) Head office Total
£m £m £m
Revenue (from external customers, based on the destination of the customer)
UK 3.9 - 3.9
US 12.0 - 12.0
EU 12.4 - 12.4
Asia Pacific 18.3 - 18.3
Rest of world 2.1 - 2.1
Total segment revenue 48.7 - 48.7
Cost of sales (15.0) - (15.0)
Research and development costs (2.6) - (2.6)
Sales and marketing costs (11.4) - (11.4)
Administrative expenses (4.1) (4.9) (9.0)
Operating profit/ (loss) from continuing operations 15.6 (4.9) 10.7
Depreciation and amortisation included above (4.1) - (4.1)
Year ended 31 December 2024 NIOX(®) Head office Total
£m £m £m
Revenue (from external customers, based on the destination of the customer)
UK 3.7 - 3.7
US 9.8 - 9.8
EU 10.3 - 10.3
Asia Pacific 16.3 - 16.3
Rest of world 1.7 - 1.7
Total segment revenue 41.8 - 41.8
Cost of sales (11.6) - (11.6)
Research and development costs (2.5) - (2.5)
Sales and marketing costs (11.2) - (11.2)
Administrative expenses (3.9) (4.9) (8.8)
Operating profit/ (loss) from continuing operations 12.6 (4.9) 7.7
Depreciation and amortisation included above (4.2) - (4.2)
Assets by segment
( )
As at 31 December 2025 NIOX(®) Total
£m £m
Cash and cash equivalents 19.9 19.9
Property, plant and equipment 0.3 0.3
Right-of-use assets 0.9 0.9
Goodwill 4.8 4.8
Intangible assets 23.8 23.8
Deferred tax assets 15.5 15.5
Inventories 5.0 5.0
Trade and other receivables 6.0 6.0
Total assets 76.2 76.2
As at 31 December 2024 NIOX(®) Total
£m £m
Cash and cash equivalents 10.9 10.9
Property, plant and equipment 0.3 0.3
Right-of-use assets 1.4 1.4
Goodwill 4.3 4.3
Intangible assets 23.5 23.5
Deferred tax assets 17.8 17.8
Inventories 4.0 4.0
Trade and other receivables 6.2 6.2
Total assets 68.4 68.4
3. Employees and directors
Monthly average number of people (including Executive and Non-Executive
Directors) employed:
2025 2024
Number Number
Office and management 27 26
Sales and marketing 64 62
Research and development 4 3
Average headcount 95 91
The Group's total headcount at 31 December 2025 was 97 (2024: 91).
Employee benefit costs
2025 2024
£m £m
Wages and salaries 9.1 9.2
Social security costs 1.6 1.5
Pension costs 0.5 0.5
Share option charge 1.9 1.9
Total employee benefit costs 13.1 13.1
Key management personnel
Key management personnel during the year included the Board of Directors,
Regional VP of APAC, Senior VP of Americas and Research, VP of Supply Chain
and Technical Operations, Regional VP of EMEA, VP of HR and Group Operational
Finance Director. The composition of key management personnel changed during
the year following the changes to the Board of Directors and the VP of HR's
redundancy. The compensation paid or payable to key management is set out
below:
2025 2024
£m £m
Short-term employee benefits (including bonus) 4.0 3.8
Termination payments(1) 0.1 -
Share-based payment expenses 1.7 1.7
Total key management remuneration 5.8 5.5
(1)Termination payments in the year relate to redundancy costs associated with
the VP of HR role.
4. Breakdown of expenses by nature
Notes 2025 2024
£m £m
Employee benefits costs 3 13.1 13.1
Depreciation charge of property, plant and equipment 0.2 -
Depreciation charge of right-of-use assets 0.5 0.5
Amortisation charge of intangible assets 3.4 3.7
5. Other income
2025 2024
£m £m
Royalty income 0.3 -
Gain on disposal of intellectual property 0.3 -
Total other income 0.6 -
During the year, NIOX sold certain legacy respiratory-related intellectual
property and associated manufacturing equipment that had been acquired in 2015
as part of the acquisition of Prosonix Limited. In December 2025, cash
proceeds of £0.3 million were received from this sale. The assets had
previously been written down to a carrying value of nil. As a result, the full
amount has been recognised as a one-time gain within other income, reflecting
the non-recurring nature of this transaction.
Royalties relate to royalty income payable by Beyond Air of 5% of the net
sales of the LungFit(®) PH device.
6. Finance costs and income
2025 2024
£m £m
Finance costs:
Bank charges (0.2) (0.1)
Interest charges for lease liabilities - (0.1)
Total finance costs (0.2) (0.2)
Finance income:
Bank interest receivable 0.4 0.8
Discount unwind on Beyond Air consideration - 0.1
Total finance income 0.4 0.9
7. Discontinued operations
Previously, the Group sold Tudorza(®) and Duaklir(®) in the United States,
where it was indicated for the maintenance treatment of patients with chronic
obstructive pulmonary disease ("COPD"). The decision to treat the COPD
business as discontinued was made on 9 April 2020 when it was announced that
the development and commercialisation agreement with AstraZeneca relating to
this business was terminating. There were no assets or liabilities classified
as held for sale in relation to the discontinued operation.
2025 2024
Profit for the year £m £m
Revenue - 0.3
Profit from discontinued operations - 0.3
Cash flow
Net cash outflow from operating activities - (0.8)
Net cash used in discontinued operations - (0.8)
Revenue relates to a revision of the rebate accrual based on information and
claims received during the year and forward-looking assumptions as to the
value of claims expected to be received in future financial years.
The cash outflow relates to the settlement of certain contractual liabilities,
principally rebates and returns, that were accrued when the business was
discontinued.
The total accrual recognised on the balance sheet relating to discontinued
operations as at 31 December 2025 was £0.1 million (2024: £0.1 million).
8. Taxation
Income tax expense 2025 2024
£m £m
Current tax
Current tax on profits for the year (0.1) (0.1)
Total current tax expense (0.1) (0.1)
Deferred income tax
Decrease in deferred tax assets (4.1) (4.3)
Total deferred tax expense (4.1) (4.3)
(4.2) (4.4)
Income tax expense is attributable to:
Profit from continuing operations (4.2) (4.4)
Numerical reconciliation of income tax expense to prima facie tax payable
The tax expense (2024: expense) for the year is higher (2024: higher) than the
standard rate of corporation tax in the UK of 25.00% (2024: 25.00%). The
differences are explained below:
2025 2024
£m £m
Profit from continuing operations before tax 11.2 7.8
Profit from discontinued operations before tax - 0.3
Profit before tax 11.2 8.1
Tax at the UK tax rate of 25.00% (2024: 25.00%) (2.8) (2.0)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Expenses not deductible for tax purposes (0.6) -
Difference in overseas tax rates 0.6 0.9
Employee share option plan 2.7 (0.3)
Tax losses for which no deferred income tax asset was recognised (4.1) (3.0)
Tax expense for the year (4.2) (4.4)
Tax losses
2025 2024
£m £m
Potential tax benefit of unused tax losses for which no deferred tax asset has 91.8 90.8
been recognised at 25% (2024: 25%)
At 31 December 2025, the Group has tax losses to be carried forward of
approximately £473.7 million (2024: £483.9 million). These can be utilised
against future taxable profits with no restrictions, except as stated below. A
proportion of these tax losses have been recognised as a deferred tax asset.
NIOX Group plc and NIOX Healthcare Limited had tax losses to be carried
forward of approximately £197.2 million (2024: £176.1 million). These losses
have no expiry date, however, the utilisation of these losses will be
restricted to 50% of profits in excess of £5.0 million generated in the
United Kingdom.
NIOX Inc. had federal tax losses to be carried forward of approximately
£120.6 million (2024: £131.4 million). Federal losses generated after 1
January 2018 have no expiry date, however, the utilisation of these losses
will be restricted to 80% of profits generated in the United States. Federal
losses generated before 1 January 2018 expire after 20 years. NIOX Inc. also
had state losses to be carried forward of approximately £80.8 million (2024:
£89.5 million) which have been generated across multiple states and have a
range of expiry periods from 5 to 20 years.
The gross amount and expiry dates of losses available for carry forward are as
follows:
Expiring within 5 years Expiring beyond 6 years
Unlimited Total
As at 31 December 2025 £m £m £m £m
Losses for which a deferred tax asset is recognised - - 96.3 96.3
Losses for which no deferred tax asset is recognised 0.3 117.4 257.7 377.4
Total 0.3 117.4 356.0 473.7
As at 31 December 2024
Losses for which a deferred tax asset is recognised - - 108.4 108.4
Losses for which no deferred tax asset is recognised 2.3 129.1 244.1 375.5
Total 2.3 129.1 352.5 483.9
9. Earnings per share
Basic earnings per share 2025 2024
Pence Pence
From continuing operations 1.69 0.81
From discontinued operations - 0.07
Total basic earnings per share attributable to the ordinary equity holders of 1.69 0.88
the Company
Diluted earnings per share
From continuing operations 1.64 0.76
From discontinued operations - 0.07
Total diluted earnings per share attributable to the ordinary equity holders 1.64 0.83
of the Company
Reconciliation of earnings used in calculating earnings per share 2025 2024
£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 7.0 3.4
From discontinued operations - 0.3
Profit used as the basis of calculating basic and diluted earnings per share 7.0 3.7
The earnings used in calculating basic and diluted earnings per share are the
same.
Adjusted basic earnings per share uses adjusted EBITDA which eliminates
interest, tax, depreciation, amortisation and share-based payment expenses.
The comparatives have been restated to align with the adjusted EBITDA metric
as the primary measure of performance.
Adjusted basic earnings per share 2025 2024
Restated
Pence Pence
From continuing operations 4.03 3.23
From discontinued operations - 0.07
Total adjusted basic earnings per share attributable to the ordinary equity 4.03 3.30
holders of the Company
Weighted average number of shares used as the denominator 2025 2024
Weighted average number of ordinary shares used as the denominator in 414,168,243 418,211,904
calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Share options(1) 11,912,490 29,247,771
Deferred shares(2) 134,961 745,898
Weighted average number of ordinary shares and potential ordinary shares used 426,215,694 448,205,573
as the denominator in calculating diluted earnings per share
Share options(1)
Options granted to employees are considered to be potential ordinary shares.
They have been included in the determination of diluted earnings per share if
the required performance targets are expected to be met based on the Company's
performance and to the extent to which they are dilutive. The options have not
been included in the determination of basic earnings per share.
Deferred shares(2)
Rights to deferred shares granted to Executive Directors under the Group's
short-term incentive scheme are included in the calculation of diluted
earnings per share, assuming that all outstanding rights will vest. The rights
are not included in the determination of basic earnings per share.
Treasury shares
The ten million treasury shares held by the Company in the prior year were not
included in the calculation of the weighted average number of ordinary shares
used as the denominator in calculating both basic and diluted earnings per
share.
10. Goodwill
2025 2024
£m £m
At 1 January
Cost 4.3 4.6
Net book amount 4.3 4.6
Year ended 31 December
Opening net book amount 4.3 4.6
Exchange differences 0.5 (0.3)
Closing net book amount 4.8 4.3
At 31 December
Cost 4.8 4.3
Net book amount 4.8 4.3
Management considers there to be only one CGU, the NIOX(®) business. The
carrying value of goodwill is allocated to the NIOX(®) CGU and was generated
in June 2015 on the acquisition of Aerocrine. The value in use for the
NIOX(®) CGU was calculated over a five-year period using a pre-tax discount
rate of 17.2%. Cash flows over five years have been considered appropriate
based on the product lifecycle. Cash flows beyond the five years were
extrapolated using the estimated terminal growth rate below. The growth rate
does not exceed the long-term average growth rate for the business. The
discount rate used is pre-tax and reflects specific risks relating to the
Group and uncertainties surrounding the cash flow projections.
The key assumptions used for the valuation of the NIOX(®) CGU are as follows:
Assumption Approach used to determine values
Valuation basis Value in use
Sales Based on past performance and management's expectations of market development.
The growth rate for 2026-2030 reflects a more cautious growth rate than the
historical Compound Annual Growth Rate.
Gross margin Based on past performance and management's expectations for the future.
Operating costs Management forecasts these costs based on the current structure of the
business, adjusting for inflationary increases but not reflecting any future
restructurings or cost-saving measures.
Period of specified projected cash flows 2025 - 5 years
2024 - 5 years
Long-term growth rate Terminal growth rates are based on management's estimate of future long-term
average growth rates.
2025 - 1%
2024 - 1%
Pre-tax discount rate Reflects specific risks relating to the relevant segments and the countries in
which they operate.
2025 - 17.2%
2024 - 15.7%
Management have considered and assessed reasonably possible changes for other
key assumptions and have not identified and instances that could cause the
carrying amount of goodwill and intangible assets to exceed its recoverable
amount.
11. Other reserves
Share-based payments reserve Transactions with non-controlling interests
Translation reserve Total other reserves
£m £m £m £m
At 1 January 2024 17.4 6.9 (6.1) 18.2
Employee share-based payments 1.6 - - 1.6
Exchange differences on translation of foreign operations - (4.2) - (4.2)
At 31 December 2024 19.0 2.7 (6.1) 15.6
Employee share-based payments 0.5 - - 0.5
Exchange differences on translation of foreign operations - 5.5 - 5.5
At 31 December 2025 19.5 8.2 (6.1) 21.6
12. Dividends
2025 2024
£m £m
Final dividend for the year ended 31 December 2024 of 1.25 pence (2023: 1 5.0 -
pence) per fully paid share - declared in 2025.
Final dividend for the year ended 31 December 2023 of 1 pence (2022: £nil) - 4.2
per fully paid share - declared in 2024.
In addition to the above dividends, since year end the directors have
recommended the payment of a final dividend of 1.55 pence per fully paid
ordinary share (2024: 1.25 pence). The aggregate amount of the proposed
dividend expected to be paid after the reporting date, out of retained
earnings at 31 December 2025, but not recognised as a liability at year end is
£6.5 million (2024: £5.0 million).
13. Cash generated from operations
Reconciliation of profit before tax to net cash generated from operations:
2025 2024
Notes £m £m
Profit from continuing operations before tax 11.2 7.8
Profit from discontinued operations before tax 7 - 0.3
Profit before tax 11.2 8.1
Adjustments for:
Finance income 6 (0.4) (0.9)
Finance costs 6 0.2 0.2
Depreciation charge of right-of-use assets 4 0.5 0.5
Depreciation charge of property, plant and equipment 4 0.2 -
Amortisation charge of intangible assets 4 3.4 3.7
Employee share-based payments 3 1.1 1.9
Net exchange differences (0.1) 0.7
Changes in working capital:
Decrease in trade and other receivables 0.5 2.8
(Increase)/ decrease in inventories (0.7) 0.5
Decrease in trade and other payables (0.2) (0.1)
Cash generated from operations 15.7 17.4
14. Related party transactions
There is no ultimate controlling party of the Group as ownership is split
between the Company's shareholders. The most significant shareholders as at 31
December 2025 and 2024 are as follows:
Ownership interest
Name 2025 2024
Harwood Capital LLP* 16.79% 17.64%
AstraZeneca plc 15.82% 16.61%
* Harwood Capital LLP acts as investment manager to North Atlantic Smaller
Companies Investment Trust plc
Under the AIM rules, the significant shareholders listed above are related
parties. During 2024, NIOX Group plc purchased 22,637,554 Ordinary Shares from
these related parties as part of the Tender Offer. The purchase price was 80
pence per share.
No transactions with related parties occurred during the years ended 31
December 2025 or 31 December 2024 as classified under IAS24.
15. Events occurring after the reporting date
Please refer to note 12 for details of the final dividend recommended by the
directors, which will be paid after the reporting date.
16. Commitments
At the end of the reporting period, capital expenditure contracted for the
NIOX PRO(®) development, but not recognised as a liability, is £nil (2024:
£0.4 million).
17. 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:
2025 2024
£m £m
Research and development costs (2.6) (2.5)
Sales and marketing costs (11.4) (11.2)
Administrative expenses (9.0) (8.8)
Add back:
Depreciation 0.7 0.5
Amortisation 3.4 3.7
Share-based payment expenses 1.9 1.9
Total expenditure (17.0) (16.4)
Adjusted EBITDA
Adjusted EBITDA excludes income and expenditures that might impact the quality
of earnings, such as share-based payment expenses.
Adjusted EBITDA is an alternative performance measure and reconciles to
operating profit as below:
2025 2024
£m £m
Adjusted EBITDA 16.7 13.8
Depreciation (0.7) (0.5)
Amortisation (3.4) (3.7)
Share-based payment expenses (1.9) (1.9)
Operating profit 10.7 7.7
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