INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024
Oxford, UK – 24 September 2024: NIOX Group plc (AIM: NIOX), a company engaged in the design, development, and commercialisation of medical devices for asthma diagnosis and management, today announces its unaudited interim results for the six months ended 30 June 2024 (“H1 2024”).
Financial highlights
- Revenue growth of 12% (15% on a constant currency basis) to £21.0 million (H1 2023: £18.8 million).
- Clinical business revenue growth of 11% (14% on a constant currency basis) to £18.5 million (H1 2023: £16.7 million).
- Adjusted EBITDA2 of £7.1 million (H1 2023: £6.2 million), reflecting higher sales and a broadly flat cost base.
- Adjusted EBITDA2 margin 33.8% (H1 2023: 33.0%).
- Adjusted basic earnings per share of 1.73p (H1 2023: 1.57p).
- Cash generated from operations of £6.0 million (H1 2023: £5.1 million), of which £0.9 million (H1 2023: £1.1 million) was used in discontinued operations.
- Strong balance sheet with no debt and cash of £21.5 million as of 30 June 2024, notwithstanding the payment of a £4.2 million dividend in June 2024 (30 June 2023: £23.8 million, 31 December 2023: £19.9 million).
Financial progress
| H1 2024
£m |
H1 2023
£m |
|
| Revenue | 21.0 | 18.8 |
| Gross margin | 72% | 73% |
| Total expenditure1 | (8.1) | (7.5) |
| Adjusted EBITDA2 | 7.1 | 6.2 |
| Operating profit | 4.2 | 3.0 |
| Profit before tax from continuing operations | 4.4 | 2.9 |
| Profit for the financial period from discontinued operations | – | 0.5 |
| Profit for the financial period | 4.4 | 3.4 |
| Cash at period end | 21.5 | 23.8 |
1 Excludes depreciation, amortisation and share option charge. See note 12 for reconciliation.
2 Earnings before interest, tax, depreciation, amortisation and share option charge. See note 12 for reconciliation.
Operational highlights
- Expansion of distributor network in the USA to target areas of untapped potential is expected to drive scalable revenue growth.
- Continued expansion of our distributor network across EMEA.
- A final dividend for the financial year ended 31 December 2023 of 1.0 pence per share (equating to a return of cash of £4.2 million) was paid on 24 June 2024.
- Development of NIOX Pro® in progress, the next generation of clinical use device.
Post period end
- Third payment of $4.5 million received from Beyond Air on 23 September 2024.
- Tender offer announced today to repurchase approximately 26.25 million shares at 80 pence per share, returning £21.0 million to shareholders if fully taken up.
- Proforma cash after tender offer (if fully subscribed) and Beyond Air receipt approximately £6.0 million at 24 September 2024.
Ian Johnson, NIOX’s Executive Chairman, said: “I am pleased to report that the Group continues to perform well with good growth in revenues and profits in the first half of the year. Cash generation remained strong which has enabled the Board to recommend a further return of capital to shareholders by way of a Tender Offer, details of which are announced today.
The Board remains confident in achieving consensus expectations for the full year.”
| Contacts
NIOX Group plc Ian Johnson, Executive Chairman Michael Roller, Chief Financial Officer |
+44 (0) 3303 309 356 |
| Singer Capital Markets (Nominated Adviser and Joint Broker)
Jen Boorer / James Fischer / James Todd
|
+44 (0) 20 7496 3000 |
| Investec Bank plc (Financial Adviser and Joint Broker)
Ben Lawrence / Lydia Zychowska |
+44 (0) 20 7597 4000 |
About NIOX
Our mission is to improve asthma diagnosis and management by greater patient access to FeNO testing. Asthma is one of the biggest healthcare issues globally with 340 million sufferers, many of whom are undiagnosed or are misdiagnosed. The Group is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a precise biomarker for asthma. Our market leading device, NIOX VERO®, is increasingly recognised by healthcare professionals as an important tool to improve the diagnosis and management of asthma. NIOX VERO® is also the device of choice by leading clinical research organisations for respiratory studies.
NIOX provides products and services via its direct sales organisation and extensive distributor network in 50 countries. For more information, please visit www.niox.com
Forward-looking statements
This press release contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of NIOX. The use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, “target” or “believe” and similar expressions (or the negatives thereof) are generally intended to identify forward-looking statements. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Nothing contained in this press release should be construed as a profit forecast or profit estimate. Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. NIOX undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.