Diaceutics PLC
("Diaceutics", the "Company" or the "Group")
Half Year Report
Diaceutics PLC (AIM: DXRX), the diagnostic commercialisation company, announces its unaudited interim results for the six months ended 30 June 2021.
Financial highlights
| H1 2021 | H1 2020 |
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Revenue (£m) | 6.0 | 5.3 |
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Gross profit (£m) | 4.4 | 3.8 |
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Gross margin | 74% | 71% |
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EBITDA (£m) | 0.3 | 0.3 |
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(Loss)/profit before tax (£m) | (0.5) | 0.03 |
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Net cash (£m) | 23.7 | 29.8 |
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Earnings per share (pence) | 0.40 | 1.52 |
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· | Positive first half performance despite the challenging COVID-19 headwinds, with growth in Revenue, Gross margin, and a positive EBITDA |
· | Revenue increased by 13% to £6.0m (H1 2020: £5.3m) or 24% on a constant currency basis |
· | The DXRX platform contributed 44% of total revenue in H1 2021, well ahead of the Board's target at the beginning of the year of 20% of full year revenue to be generated via the platform |
· | Reported Gross margin increased by 4% in comparison to the comparative period |
· | EBITDA, of £0.3m (H1 2020: £0.3m) net of investments during H1 in business development, sales commission, and legal and professional costs |
· | Loss before tax of £0.5m (H1 2020: Profit £0.03m) which is primarily driven by an expected increase in amortisation as a result of the DXRX platform launch on 28 October 2020 |
· | Closing cash position of £23.7m (H1 2020: £29.8m) |
Operational highlights
· | 15 pharmaceutical clients now engaged on the DXRX platform |
· | DXRX's second phase launch on track for H2 2021 for four additional modules |
· | Contracts with 33 clients for H1 2021 (H1 2020: 29), and 48 brands (H1 2020: 42) with the addition of two new clients, one of which is our first diagnostic client |
· | High level of repeat business at 93% (H1 2020: 91%) |
· | Global pharmaceutical teams re-engaging at pre-COVID levels, led by the US which represents 63% of revenue in H1 2021 (H1 2020: 59%) |
· | Continued investment in R&D, with £2.7m invested in platform development and our 49 Diagnostic Deductive Pathways in conjunction with adding 44 million patient testing records to our current data repository |
Outlook
The Group has made a good start to the 2021 financial year, despite the ongoing challenges presented by the COVID-19 pandemic, and currency headwinds. Our financial performance provides the early indicators of a more balanced first half, second half weighting compared to prior years.
Having successfully launched our DXRX platform in Q4 2020, the Group has built the initial foundations for platform adoption and improved our competitive position to service the unmet diagnostic commercialisation needs of the pharmaceutical industry. The engagement from our clients on the platform, which is ahead of the Board's expectations, and the progress made with our laboratory network during H1, sets us in good stead for H2.
Peter Keeling, Diaceutics' Chief Executive, commented:
"Our focus for 2021 was on switching our clients over to the DXRX platform to gain more of our clients investment in diagnostic commercialisation as well as benefit from the internal efficiencies which accrue from a platform business model. I am pleased with our achievement against that goal with twice the predicted level of business flowing through DXRX. "
Enquiries:
Diaceutics PLC |
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Philip White, Chief Financial Officer | Via Alma PR |
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Stifel Nicolaus Europe Limited (Nomad & Broker) | Tel: +44 (0)20 7710 7600 |
Ben Maddison |
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Stewart Wallace |
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Nick Adams |
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Alma PR | Tel: +44(0)20 3405 0205 |
Caroline Forde | |
Robyn Fisher |
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Kieran Breheny |
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About Diaceutics
At Diaceutics we believe that every patient should have access to the right treatment at the right time. We provide the world's leading pharmaceutical companies with an end-to-end solution for the launch of precision medicine diagnostics enabled by DXRX - The Diagnostic Network®.
DXRX is the world's first diagnostic commercialisation platform for precision medicine, integrating multiple pipelines of real-world diagnostic testing data from a global network of laboratories.
Access Full Report at: Half-year Report (investis.com)