INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022
NIOX GROUP PLC
(formerly Circassia Group plc)
(“NIOX” or the “Company” and, together with its subsidiaries, the Group“)
Oxford, UK – 14 September 2022: NIOX Group plc (LSE: 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 2022 (“H1 2022”).
Financial highlights
- Underlying NIOX® revenue growth of 11% to £15.5 million (excluding the effect of a one-off revenue item of £0.6 million recognised in H1 2021)
- The Group generated an adjusted EBITDA profit of £3.2 million (H1 2021: £0.3 million loss), reflecting improved margins and a substantial reduction in the cost base
- Strong balance sheet with no debt and cash of £13.8 million as of 30 June 2022 (30 June 2021: £11.3 million, 31 December 2021: £12.6 million)
Financial progress
| H1 2022
£m |
H1 2021
£m |
|
| Revenue | 15.5 | 14.6 |
| Gross margin | 71% | 68% |
| Total expenditure1 | (7.8) | (10.2) |
| Adjusted EBITDA2 | 3.2 | (0.3) |
| Operating profit / (loss) | 0.6 | (2.6) |
| Beyond Air settlement consideration | 8.1 | – |
| Profit / (loss) before tax from continuing operations | 8.9 | (2.0) |
| Profit for the financial period from discontinued operations | 0.3 | 1.1 |
| Profit / (loss) for the financial period | 9.2 | (0.9) |
| Cash3 at period end | 13.8 | 11.3 |
1 Excludes depreciation, amortisation, impairment and share option charge.
2 Earnings before interest, tax, depreciation, amortisation, impairment and share option charge. See note 12 for reconciliation.
3 Includes cash and cash equivalents.
Operational highlights
- FDA approval for Beyond Air’s LungFit® PH device received on 28 June 2022, initiating total milestone payments of $10.5 million over the next three years, with up to a further $6 million in royalty payments thereafter
- Ongoing transition to distributor-led business model with new arrangements in the USA and China expected to drive scalable revenue growth
Post period end
- Initial payment of $2.5 million received from Beyond Air on 24 August 2022
- Net cash at 31 August 2022 increased to £17.6 million
- The Company received approval from shareholders on 1 September 2022 to change its name from Circassia Group plc to NIOX Group plc
- The Company will shortly be proposing a capital reduction scheme to shareholders for approval in order to provide flexibility to enable the Board to return surplus cash to shareholders, via dividends and/or share buybacks, if considered appropriate in the future
Ian Johnson, NIOX’s Executive Chairman, said: “The Group has performed well in the first half of the year with good underlying growth in revenue and profits despite Covid-19 lockdowns persisting in China and the ongoing effects of Covid-19 on testing volumes in Japan. Cash generation remained strong with net cash at the half year of £13.8 million, up from £12.6 million at the end of 2021.
Future revenue growth is likely to be driven by success in raising the awareness of the benefits of FeNO testing amongst clinicians, patients and drug developers, the continued expansion of our worldwide network of distributors and investing in the installed base of devices. The NIOX Group is now in a strong financial position to deploy its cash resources to invest in these areas and also to develop next generation devices, including a home-use device.
The second half has started well with revenues for July and August taken together up 25% on the same period in 2021. Margins remain strong and costs are continuing at a much-reduced level. The Board remains confident of achieving management expectations for the full year, which were significantly upgraded in July.”
Contacts
NIOX
Ian Johnson, Executive Chairman Tel: +44 (0) 1865 405 560
Michael Roller, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker)
Aubrey Powell/ Jen Boorer Tel: +44 (0) 20 7496 3000
About NIOX
Our ambition is to improve the quality of life of millions of people suffering from asthma. Asthma is one of the biggest healthcare issues globally with 340 million sufferers, many of whom are undiagnosed or misdiagnosed The Group is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a biomarker of inflammatory 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. We passionately believe in empowering everyone to manage their health at home and will look to provide a device designed exclusively for home use.
At present, NIOX provides products and services in around 50 countries. For more information, please visit www.investors.niox.com
The Group’s interim results report is available online at www.investors.niox.com/investors/financial-reports/
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.
Download Interim Results 2022
Click here to download full preliminary results as a PDF.