Diaceutics PLC (AIM: DXRX), a diagnostic commercialisation company for precision testing, reports its audited results for the year-ended 31 December 2020.
The previous 12 months reflect a challenging year in light of the COVID-19 pandemic. The Group continued on its mission to become the leading provider of precision testing data and commercialisation services for the global Pharma industry.
• Revenue decreased by 6% to £12.7m (2019: £13.4m)
• Gross profit decreased by 8% to £9.4m (2019: £10.3m)
• Gross margin of 75% (2019: 77%)
• Adjusted loss before tax* (£0.3m) (2019: adjusted profit before tax £1.8m)
• Loss before tax £0.7m (2019: profit before tax £0.5m)
• Adjusted EBITDA* of £0.5m (2019: £2.4m)
• EBITDA £0.2m (2019: £1.0m)
• Net assets of £40.2m (2019: £20.1m)
• Net cash inflow of £13.6m reflecting a gross raise of £20.5m (2019: inflow of £9.7m reflecting a gross raise of £17.0m)
• Strong balance sheet with net cash of £25.3m (2019: net cash of £11.7m)
*Adjusted for exceptional costs of £0.4m in relation to a restructuring event.
• Strengthened the balance sheet in June with an equity placing of £20.5m (before costs)
• Successfully launched the DXRX platform in October 2020 within budget
• Completion of restructuring exercise by the year-end, resulting in a £1.9m annual reduction in cost base but resulted in exceptional costs of £0.4m
• Provided data and services to 53 therapy brands in 29 countries serving 39 clients - maintaining our brand engagement through a difficult COVID-19 year
• Strong client repeat business at 92% of revenue (2019: 87%)
• Added seven new clients to our customer list - now servicing 39 clients (2019: 36 clients)
• Integration and online access to all our 365 million patient testing records and 49 Diagnostic Deductive Pathways TM (DDPs)
• Added 138 million new patient testing records to our data lake (2019: 112m)
Peter Keeling, Chief Executive Officer, commented: "Recent Market data indicates that US Pharma commercial activity had returned to 95% of pre-COVID-19 levels by the end of December 2020. This has a direct link to Pharma commercial investment and consequently we observe greater predictability returning to Pharma budgeting. This combines with the on-track adoption of our DXRX platform by clients in the first three months of being on market.
"As a result, we have seen an increased level of engagement from clients in the past quarter and our business development team continue to see positive steps towards a more predictable pipeline position. The Group is well placed to respond to these opportunities, and feedback from our clients has been positive. That said, we recognise that we are not immune to ongoing challenges within the global market, particularly as we emerge from the COVID-19 pandemic.
"On balance, given the positive and cautious approach to H1 2021, the board have approved the re-instatement of guidance for 2021. I am pleased with this decision and my management team remain focused on accelerating adoption of our DXRX platform."