Yourgene Health PLC – Final Results, Business Update and Director Change
Yourgene Health plc (AIM: YGEN), the international molecular diagnostics group which commercialises genetic products and services, announces its results for the year ended 31 March 2019, and provides a business update.
Full year results summary:
- Comprehensive profit of £3.4m (2018: £9.6m loss), the first since 2014 IPO, due substantially to benefits of debt restructuring gains but also to improved trading
- Revenues grew 45% to £8.9m (2018: £6.1m)
- Gross profit also grew 45% to £4.6m (2018: £3.2m)
- Administrative expenses before separately disclosed items were held level at £9.0m, despite a £0.3m increase in net development expenditure
- Adjusted EBITDA loss reduced by 29% to £3.1m (2018: £4.4m)
- Operating loss reduced by 44% to £4.8m (2018: £8.6m)
- Cash used in operations reduced to £4.0m (2018: £9.6m)
- Net cash (cash less borrowings) at year-end of £1.0m (2018: £11.9m net debt), prior to post period-end fundraise and associated acquisition of Elucigene Diagnostics (“Elucigene”)
- After the period-end, in April 2019, the Company completed an equity fundraise, raising gross proceeds of £11.8m and the acquisition of Elucigene for an enterprise value of £8.8m represented by £6.3m cash and £2.9m equity
- Elucigene recently filed its calendar 2018 accounts with revenues of £3.6m and EBITDA of £1.0m (FRS102 basis)
- Integration of the UK operations of Yourgene Health and Elucigene is proceeding well and annualised synergy cost savings of over £0.5m have been identified, many of which have already been implemented
- The two commercial teams are now operating as a combined function and seeking opportunities for cross-selling, co-presenting at marketing events, and have since delivered the Group’s first £1m+ revenue months
- Penetration of existing markets is increasing, for example in India and France
- New markets focus includes Japan, where early momentum is building, and the United States, where a diverse pipeline is expected to generate its first revenues in the current financial year
- Development is progressing well for the new IONA® test compatible with the Illumina next generation sequencing platform and the test remains on schedule for launch in early 2020
- The Group’s first oncology product is in a soft launch phase with a number of UK and European clinical partners
- After a review of the Board’s composition, it has been agreed that Keng Hsu will step down from the Board from today to improve the balance of Non-executive and Executive directors, and to allow greater focus on his business development work in Asia
- It is anticipated that additional Non-executive directors will be appointed in due course to continue this rebalancing and bring relevant skills to the Group
- The Group’s Annual Report and Accounts for the financial year ended 31 March 2019 will be available on www.yourgene-health.com later today.
- The Group’s Annual General Meeting will be held in September 2019. Further details will be notified to shareholders in due course. For shareholders who have opted to receive printed copies of the Annual Report and Accounts, these will be posted in the next few weeks ahead of the AGM formal notice.
Lyn Rees, CEO of Yourgene, commented: “These results demonstrate the strong underlying growth of the business after the transformative realignment of our partnership with Thermo Fisher and formation of a new one with Illumina. We now have a strong balance sheet following the equity fundraise and Elucigene acquisition, the integration of which is progressing ahead of my expectations. We are now well positioned and very much focused on growth. I look forward to launching a new version of the IONA® test, our first oncology product and converting our exciting pipeline of new business opportunities into profitable growth.”