Oxford, UK – 17 September 2020: Circassia Group plc (“Circassia” or “the Company”) (LSE: CIR), a leading medical device business focused on respiratory disease, today announces its unaudited interim results for the six months ended 30 June 2020.

Financial highlights

  • NIOX® sales decreased 39% to £11.4 million (H1 2019: £18.6 million) as a result of COVID-19 impact
  • Signs of gradual recovery in Q3 but still trading well below prior year
  • COPD business during transition period largely unaffected by COVID-19. H1 revenues of £11.6 million 25% up on H1 2019 (£9.3 million)
  • EBITDA loss for the continuing NIOX® business largely unchanged at £6.2 million (H1 2019: £6.0 million) despite revenue reduction of £7.2 million, reflecting substantial reduction in cost base
  • Cash outflow of £17.4 million in H1 dominated by payments which will not recur in H2, including payment of £8.9 million for Tudorza®and Duaklir® inventory and redundancy and employment costs for the former COPD salesforce of £4.6 million
  • Company is debt free with net cash of £9.6 million as of 30 June 2020

Financial progress

Key performance indicators (KPIs) H1 2020


H1 2019


Revenue £11.4m £18.6m
R&D2 (£1.7m) (£2.3m)
S&M2 (£7.7m) (£12.7m)
G&A2 (£4.6m) (£4.8m)
EBITDA (£6.2m) (£6.0m)
Loss for the financial period from continuing operations (£9.4m) (£7.8m)
Loss for the financial period from discontinued operations (£8.6m) (£21.2m)
Loss for the financial period (£18.0m) (£29.0m)
Cash3 at period end £9.6m £21.0m

Operational highlights

  • Transformational transaction to hand COPD products (Tudorza® and Duaklir®) back to AstraZeneca completed 27 May 2020. Transition is proceeding well with a vastly reduced run off team
  • Business now focussed exclusively on asthma diagnosis and management with the Company’s market leading NIOX® device and associated consumables

Post period update

  • Further significant reduction in cost base of continuing business implemented
  • New operational management structure put in place to reflect change of business focus
  • Signs of gradual recovery in NIOX® clinical sales in Q3, but revenues remain well below prior year
  • Equity facility of £5 million announced on 2 June 2020 being drawn down today

Ian Johnson, Circassia’s Executive Chairman, said: “The decision to hand back the COPD products and focus the Group’s activities on NIOX® has led to a significant reduction in the cost base of the Group reflecting its smaller size, reduced complexity and lower regulatory risk profile.  The Group’s underlying cost base in 2019 was £74 million and it had net debt of £83 million at 31 December 2019.  The return of the COPD business to AstraZeneca eliminated the Group’s debt. Cost saving opportunities in the Group’s NIOX® business have been pursued diligently throughout the year to date and we anticipate that by the time we enter 2021, the underlying cost base of the ongoing business will have reduced from £35.3 million in 2019 to no more than £23 million on an annualised basis, excluding depreciation, amortisation and head office costs (expected to be approximately £1.6 million in 2021).  While it remains difficult to predict revenues in the current COVID Pandemic, with this reduced cost base the Group would be expected to be EBITDA positive at 2019 revenue levels of £34.6 million.” 




Ian Johnson, Executive Chairman                                                                c/o Peel Hunt

Michael Roller, Chief Financial Officer

Peel Hunt (Nominated Adviser and Joint Broker)

James Steel / Oliver Jackson                                                                      Tel: +44 (0) 20 7418 8900

Numis Securities (Joint Broker)

James Black / Duncan Monteith                                                                  Tel: +44 (0) 20 7260 1000

About Circassia

Circassia is a leading medical device business focused on respiratory disease.  The Company sells its market leading NIOX® asthma diagnosis and management products directly to specialists in the United States, United Kingdom, China and Germany, and in a wide range of other countries through its network of distribution partners.  For more information please visit

1 Restated to show the results of the COPD business as discontinued

2 Excludes depreciation and amortisation

3 Includes cash, cash equivalents

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 Circassia.  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.  Circassia 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.


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Interim Results 2020

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