Manchester, UK – 2 December 2019: Yourgene Health plc (AIM: YGEN), the international molecular diagnostics group which commercialises genetic products and services, announces its unaudited half year report for the six months ended 30 September 2019, in line with expectations.
The results reflect strong organic growth as well as a first contribution from Elucigene Diagnostics, the trading name of Delta Diagnostics (UK) Ltd (“Elucigene”), acquired in April 2019, with the Group’s first profits at an adjusted EBITDA level demonstrating significant progress towards profitability. Yourgene remains on track to hit ambitious growth targets for the full year in line with consensus expectations.
· Revenues increased by 97% to £7.8m (H1 2018-19: £3.9m)
– Organic growth of 56%, excluding contributions from the Elucigene acquisition
· Gross profit up 141% to £4.7m (H1 2018-19: £2.0m)
· Adjusted EBITDA* of £0.3m (H1 2018-19: loss of £2.5m)
· General administrative expenses up 22% to £5.5m (H1 2018-19: £4.5m) including Elucigene expenses
· Operating loss reduced by 50% to £1.3m (H1 2018-19: £2.5m)
– Loss was £0.7m before one-off acquisition and fundraising costs
· Oversubscribed £11.8m gross fundraise, of which £6.3m was used for acquisition cash consideration
· Cash used by operations halved to £1.6m (H1 2018-19: £3.2m)
· Cash and cash equivalents at 30 September 2019 of £4.1m (30 September 2018: £0.2m)
· Net cash (cash less borrowings) significantly improved to £3.6m (H1 2018-19: net debt of £12.8m)
* Adjusted EBITDA is the operating profit/(loss) before interest, tax, depreciation, amortisation and acquisition-related expenses shown separately disclosed on the face of the Income Statement
· Acquisition of Elucigene and associated £11.8m (gross) equity fundraise in April 2019
· Launch of first oncology product, the Elucigene DPYD assay, a new chemotoxicity diagnostic assay
· First US revenues and opening of Yourgene Health Inc in the US
· Development of the Illumina-based IONA® test progressing well and on schedule
· European quality accreditation transferred to BSI Netherlands to offset Brexit risks and prepare for the roll-out of Illumina-based NIPT test in 2020
· Non-Executive Appointments Dr John Brown, CBE and Jonathan Seaton
· Post-period end launch of Yourgene Flex™ Analysis Software to support product diversification
Lyn Rees, Chief Executive Officer of Yourgene, commented:
“I am delighted to announce our first EBITDA profit as a demonstration of the transformation that is underway at Yourgene and resultant organic growth, supported by the contribution from Elucigene and the smooth integration process that is almost complete.
“The reorientation of the business to focus on our key four strategic growth drivers is starting to bear fruit, and I remain convinced we have a very significant opportunity ahead of us. We are confident in our outlook for the year end and very excited about the prospects for further growth over the following years.”