REG - Oxford Nanopore Tech - Half Year Trading Update

Oxford Nanopore TechnologiesAnnouncement

24/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240724:nRSX6174Xa&default-theme=true

RNS Number : 6174X  Oxford Nanopore Technologies plc  24 July 2024

24 July 2024

Oxford Nanopore Technologies plc

Half Year Trading Update

·      Trading in-line with both revenue and gross margin guidance in
the face of challenging end-markets

·      Building commercial momentum heading into the second half
reinforces confidence; full year 2024 and medium-term guidance reaffirmed

Oxford Nanopore Technologies plc (LSE: ONT) ("Oxford Nanopore" or "the
Group"), the company delivering a new generation of molecular sensing
technology based on nanopores, today provides a trading update for the six
months ended 30 June 2024 ahead of results, which will be published on 3
September 2024.

The Group expects to report Life Sciences Research Tools (LSRT) revenue for
the six months ended 30 June 2024 of approximately £84 million (H1 2023:
£86.0 million), broadly flat year-on-year at constant currency; marginally
down (2%) on a reported basis, including foreign exchange headwinds.
Underlying 1  LSRT revenue, grew by 12.4% on a constant currency basis
year-on-year. Growth for the first half of 2024 is in-line with expected 2024
phasing.

Underlying growth has been strongest across the PromethION franchise 2 ,
across all product lines. Underlying growth was delivered across each region,
and it was strongest across EMEAI and APAC, with commercial momentum building
for the second half, supported by new product launches, a number of new and
expanded contracts, and a step up in sales team productivity in the second
quarter.

Gross margin for the first half is expected to show year-on-year improvement,
despite foreign exchange headwinds, and remains on track to meet the Group's
full year 2024 guidance.

Outlook

Full year 2024 guidance remains unchanged:

-     LSRT revenue growth is expected to be between 6 and 15% on a
constant currency basis and underlying revenue growth is expected to be
between 20 and 30% on a constant currency basis. The Group continues to expect
FY 2024 revenue to be second half weighted, with an approximate 45:55 split.

-     Gross margin is expected to be approximately 57%.

All medium-term (FY 2027) guidance is unchanged.

 

Gordon Sanghera, Chief Executive Officer, commented:

"Our first half performance is in-line with our expectations. We delivered
robust underlying revenue growth, despite a challenging macroeconomic
backdrop.

 

"We enter the second half in a strong position; new contract wins coupled with
the increased productivity of our sales teams in the second quarter reinforces
our confidence in our full year 2024 outlook. In addition, the launch of new
products from our regulated pipeline, including GridION Q-Line and ElysION,
our sample-to-answer automated sequencing solution, will drive adoption in new
clinical and applied markets in the near and medium-term."

 

 ENDS 

 

This trading update is based upon unaudited management accounts and has been
prepared solely to provide additional information on trading to the
shareholders of Oxford Nanopore Technologies plc. All figures are provisional
and subject to further review.

For further information, please contact:

Oxford Nanopore Technologies plc

Investors:         ir@nanoporetech.com (mailto:ir@nanoporetech.com)

Media:              media@nanoporetech.com
(mailto:media@nanoporetech.com)

 

Teneo (communications adviser to the Company)

Tom Murray, Olivia Peters

+44 (0) 20 7353 4200

OxfordNanoporeTechnologies@teneo.com
(mailto:OxfordNanoporeTechnologies@teneo.com)

 

Notes:

-     All revenue in this document is Life Sciences Research Tools (LSRT)
revenue.

-     All 'underlying revenue' throughout this document is LSRT revenue
excluding revenue from COVID sequencing and revenue from the Emirati Genome
Program (collectively £10.4 million in H1 2023 and £1.5m in H1 2024).

-   All 'underlying growth' throughout this document is LSRT revenue growth
after adjusting for COVID sequencing and the Emirati Genome Program revenues.

-     Underlying revenues include fluctuations in currency unless
explicitly stated otherwise.

-     Constant currency applies the same rate to the H1 2024 and H1 2023
non-GBP results based on H1 2023 rates.

-     All percentages compare to the equivalent 2023 period.

About Oxford Nanopore Technologies plc:

Oxford Nanopore Technologies' goal is to bring the widest benefits to society
through enabling the analysis of anything, by anyone, anywhere. The company
has developed a new generation of nanopore-based sensing technology that is
currently used for real-time, high-performance, accessible, and scalable
analysis of DNA and RNA.  The technology is used in more than 120 countries,
to understand the biology of humans, plants, animals, bacteria, viruses and
environments as well as to understand diseases such as cancer. Oxford
Nanopore's technology also has the potential to provide broad, high impact,
rapid insights in a number of areas including healthcare, food and
agriculture.

 

Oxford Nanopore devices sequence DNA and RNA directly and sequence short to
ultra-long fragments of DNA, for a truly comprehensive picture of the genome.
Data is streamed in real-time and can enable rapid insights.  The technology
is fully scalable - from pocket-sized to ultra-high throughput devices.

For more information please visit: www.nanoporetech.com
(http://www.nanoporetech.com)

 

Forward-looking statements

This announcement contains certain forward-looking statements. For example,
statements regarding expected revenue growth and profit margins are
forward-looking statements. Phrases such as "aim", "plan", "expect", "intend",
"anticipate", "believe", "estimate", "target", and similar expressions of a
future or forward-looking nature should also be considered forward-looking
statements. Forward-looking statements address our expected future business
and financial performance and financial condition, and by definition address
matters that are, to different degrees, uncertain. Our results could be
affected by macroeconomic conditions, the COVID-19 pandemic, delays in our
receipt of components or our delivery of products to our customers,
suspensions of large projects and/or acceleration of large products or
accelerated adoption of pathogen surveillance. These or other uncertainties
may cause our actual future results to be materially different than those
expressed in our forward-looking statements.

 1  All 'underlying revenue' in this document is LSRT revenue excluding
revenue from COVID sequencing and revenue from the Emirati Genome Program
(collectively £10.4 million in H1 2023 and £1.5m in H1 2024). Underlying
revenue includes fluctuations in currency unless explicitly said otherwise.
See the notes section for further details.

 

 2  PromethION franchise includes all PromethION devices (P2 Solo, P2i, P24,
P48) and PromethION Flow Cells

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFIFISDVISFIS