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Diaceutics releases interim results for period ended 30 June 2022

27 September, 2022

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27 September 2022

Diaceutics PLC

("Diaceutics" or "the Company" or “the Group”)

Half Year Report for the period ended 30 June 2022

Strong market momentum and DXRX platform adoption provides increased revenue visibility

Diaceutics PLC, (AIM: DXRX), a leading diagnostic commercialisation company which provides data, analytics and technology enabled services via its proprietary DXRX platform to the precision medicine market, announces the following unaudited half year report for the six months ended 30 June 2022.

Financial Highlights 

 

 

H1 2022

H1 2021

Change 

Total Revenue

£7.5m

£6.0m

+25%

Revenue generated through the platform 

76%

63%

+13 ppts

Gross Profit

£5.1m

£4.4m

+16%

Gross Profit Margin

68%

74%

-6 ppts

Gross Profit Margin excluding amortisation

84%

87%

-3 ppts

EBITDA

£0.3m

£0.3m

£-

Loss before tax

-£1.1m

-£0.5m

-£0.6m

Operating cash inflow

£3.3m

£1.3m

+£2.0m

Net cash

£20.4m

£23.7m

-£3.3m

Order book (versus December 2021)

£10.2m

£1.7m

+£8.5m


  • Revenue for the six months to 30 June 2022 increased 25% to £7.5 million (H1 2021: £6.0 million), 18% on a constant currency basis
  • 132% increase in Total Contract Value¹ (‘TCV‘) signed in the period, to over $20.4 million (H1 FY21: $8.8 million) reflecting the increased breadth of product offerings and multi-year length of contracts
  • Order book² at 30 June 2022 grew to £10.2 million, up from £1.7 million at December 2021, with £3.8 million of the order book expected to be realised in H2 2022
  • DXRX platform implementation approaching peak adoption with 76% of revenues generated through the platform, a year ahead of expectations, with 37% of revenues now being derived from subscription-based contracts
  • Early stage and lower margin contract deliverables within the recently established TES business line saw a short-term reduction in gross margin in the period which is expected to return above 70% for the full year

Operational Highlights

  • Launch of new and enriched platform functionality, significantly enhancing the user experience and enabling the platform to be embedded within customers' own CRM platforms and commercial processes
  • 16 pharma focused and tailored products developed and launched, 80% of which are now generating revenue. The six top performing products have contracted sales in excess of $1.5 million in H1 2022
  • Signal data products enhanced through approval from the US Centers for Medicare & Medicaid Services (CMS) to receive medical claims data at an increased frequency – 18,000 therapeutically actionable patients identified for pharma customers to date
  • 42% increase in number of labs on the DXRX platform, taking the total to 777 across 38 countries, significantly increasing the DXRX global platform access to data and customer offerings
  • Strengthening of the Diaceutics team with recruitment across the data analysis and customer support teams, in addition to the appointment of Julie Browne as COO and Nick Roberts as CFO


Outlook

 With a growing order book and substantially increased sales pipeline, the Board remains positive about the Group’s outlook and expects to report full year results in line with expectations.

1 Total Contract Value (‘TCV’) is the overall value of customer contracts signed and includes revenue recognised in the period and the value of future contracted revenue not yet recognised (Order book)  

² Order book is the value of future contracted revenue not yet recognised 


Peter Keeling, CEO and Founder of Diaceutics commented:

 

“I am pleased to report a strong performance in the first half of the year, with excellent revenue and order book growth providing positive momentum into H2 2022 and future years, and demonstrating the effectiveness of our platform business model as it scales. 

 

Continued investment in our platform business alongside our dedication to both platform adoption and customer migration has enabled Diaceutics to progress faster and farther than anticipated, with our customer adoption timeline currently a year ahead of plan. 

 

As Pharma’s investment in precision medicine returns to pre pandemic levels, we are optimistic that Diaceutics is well positioned to outperform market growth rates as we grow our innovative product portfolio and build upon our leadership position.”

 

Enquiries:

Diaceutics PLC 


Nick Roberts, Chief Financial Officer

Via Alma PR





Stifel Nicolaus Europe Limited (Nomad & Broker)

Tel: +44 (0)20 7710 7600

Ben Maddison


Stewart Wallace


Nick Adams






Alma PR

Tel: +44(0)20 3405 0205

Caroline Forde

[email protected]

Kieran Breheny


Matthew Young


 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.

Diaceutics' data capability is one of the three key value drivers it has integrated into its unique DXRX platform alongside its global Lab network and product suite tailored for Precision testing.