REG - Yourgene Health PLC - First half trading update

Yourgene HealthAnnouncement

03/11/2022 07:01

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RNS Number : 1260F  Yourgene Health PLC  03 November 2022

 

Yourgene Health plc

("Yourgene", the "Company" or the "Group")

 

First half trading update

 

Manchester, UK - 03 November 2022: Yourgene (AIM: YGEN), a leading
international molecular diagnostics group, provides the following unaudited
trading update for the six months ended 30 September 2022 ("H1 FY23").

 

Highlights

Core revenues for H1 FY23, i.e. excluding COVID-related activities, were
£8.0m (H1 FY22: £7.0m), an increase of 14%. Total revenues on a statutory
basis were £9.6m (H1 FY22: £17.5m) reflecting the transition away from COVID
services post-pandemic, and in total representing over 40% of consensus market
expectations for the full year which is consistent with the historical H1 / H2
pattern.

 

The revenue breakdown across the Group's portfolio of technologies and
services, in each case excluding those derived from COVID-related activities,
is as follows:

·    Recurring revenues, i.e. excluding one-off hardware sales, were up
20% to £5.5m (H1 FY22: £4.7m)

·    Genomic Technologies revenues increased by 10% to £6.1m (H1 FY22:
£5.5m)

-      NIPT category up 18% year-on-year demonstrating a continuing
recovery post pandemic

-      Ranger® Technology revenue run rate now over USD $2.0m per annum

-      Growth pipeline being converted, including three new NIPT accounts
won in H1 and being installed early in H2

·    Genomic Services revenues up 26% to £1.9m (H1 FY22: £1.5m)

-      NIPT services up 50% to £1.3m on the back of Asia reopening post
COVID

-      Steady progress in building a broader research and oncology
service portfolio

 

The year-to-date performance and healthy commercial pipeline supports
unchanged management revenue expectations for the year as a whole. In line
with other businesses in the UK facing inflationary and economic pressures and
currency fluctuations, the Company is experiencing some erosion to margins
which will only partially be offset by existing measures to mitigate these
effects. The Company has prioritised expanding market share in its core
markets above near-term margin protection and therefore expects margins to
remain below the 60% level previously forecast for the remainder of the
financial year.

 

In line with previous announcements, the Company remains on track to reduce
its operating costs by £5m, approximately one-third, in the current financial
year when compared to FY22, excluding restructuring expenses.  To mitigate
the margin pressures, the Board continues to assess its cost base in the
context of its pipeline of commercial partnerships and discretionary
investment options. The Board is confident that it can further reduce
operating costs to achieve positive adjusted EBITDA in the next financial
year, and can exercise control over discretionary spending and working capital
to manage the Group's financial position.  The necessary decisions will be
taken as commercial progress in the second half of the financial year becomes
clearer.

 

Lyn Rees, Chief Executive Officer of Yourgene, commented: "This continues to
be a year of transition for Yourgene, with encouraging delivery of top line
performance in the first half creating a solid base for expected future
growth. It is particularly pleasing that the core business has shown improved
momentum in such difficult macroeconomic conditions. Whilst margins have been
impacted by the current external environment, we are continuing to reshape the
business and are evaluating the best ways to manage costs without constraining
future growth where possible.  The year-to-date performance informs the
Board's confidence in the business remaining on track to deliver full-year
revenues in line with expectations and to prioritise market penetration over
near-term EBITDA delivery. Yourgene remains well placed to exploit the
opportunities available to its growing portfolio of genomic products and
services and, with additional partnerships in place and being added, is
expanding its market access to create significant strategic value."

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

The Directors of the Company take responsibility for this announcement.

 

 Yourgene Health plc                                Tel: +44 (0)161 669 8122

 Lyn Rees, Chief Executive Officer                  investors@yourgene-health.com (mailto:investors@yourgene-health.com)
 Barry Hextall, Chief Financial Officer
 Joanne Cross, Director of Marketing

 Cairn Financial Advisers LLP (NOMAD)               Tel: +44 (0)20 7213 0880
 Liam Murray / James Caithie / Ludovico Lazzaretti

 Singer Capital Markets (Corporate Broker)          Tel: +44 (0)20 7496 3000
 Aubrey Powell / Tom Salvesen / George Tzimas

 Walbrook PR Ltd (Media and Investor Relations)     Tel: +44 (0)20 7933 8780 or yourgene@walbrookpr.com
 Paul McManus / Lianne Applegarth / Alice Woodings  Mob: 07980 541 893 / 07584 391 303 / 07407 804 654

 

 

About Yourgene Health

Yourgene Health is an international molecular diagnostics group which develops
integrated genomic technologies and services enabling precision medicine. The
group works in partnership with global leaders in DNA technology to advance
diagnostic science.

 

Yourgene primarily develops, manufactures, and commercialises simple and
accurate molecular diagnostic solutions, for reproductive health, precision
medicine and now infectious diseases. The Group's flagship products include
non-invasive prenatal tests (NIPT) for Down's Syndrome and other genetic
disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests,
and a recent extension into the oncology space with DPYD genotyping.

 

The launch of Yourgene Genomic Services has enabled Yourgene to offer a global
laboratory service network equipped to be a full life-cycle partner for
clinical, research and pharmaceutical organisations to support partners at the
preclinical, clinical, and post-market stages to develop, manufacture, obtain
regulatory approval and commercialise new products and services. In addition,
Yourgene Genomic Services offers an NIPT and high throughput COVID-19 testing
service.

 

In August 2020, Yourgene acquired Coastal Genomics, Inc., a sample preparation
technology company based in Vancouver, Canada, enabling the Company to extend
its offering and IP portfolio in the DNA sample preparation sector. The
acquisition increased Yourgene's geographical penetration into the US and
Canada, supplementing existing coverage in the UK, Europe, MEA and Asia.

 

Yourgene Health is headquartered in Manchester, UK with offices in Taipei,
Singapore, the US and Canada, and is listed on the London Stock Exchange's AIM
market under the ticker "YGEN". For more information visit
www.yourgene-health.com (http://www.yourgene-health.com/) and follow us on
twitter @Yourgene_Health.

 

 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.

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