Yourgene Health plc
(“Yourgene” or the “Group” or the “Company”)
First half trading update
Manchester, UK – 03 November 2022: Yourgene (AIM: YGEN), a leading international molecular diagnostics group, provides the following unaudited trading update for the six months ended 30 September 2022 (“H1 FY23”).
Core revenues for H1 FY23, i.e. excluding COVID-related activities, were £8.0m (H1 FY22: £7.0m), an increase of 14%. Total revenues on a statutory basis were £9.6m (H1 FY22: £17.5m) reflecting the transition away from COVID services post-pandemic, and in total representing over 40% of consensus market expectations for the full year which is consistent with the historical H1 / H2 pattern.
The revenue breakdown across the Group’s portfolio of technologies and services, in each case excluding those derived from COVID-related activities, is as follows:
• Recurring revenues, i.e. excluding one-off hardware sales, were up 20% to £5.5m (H1 FY22: £4.7m)
• Genomic Technologies revenues increased by 10% to £6.1m (H1 FY22: £5.5m)
- NIPT category up 18% year-on-year demonstrating a continuing recovery post pandemic
- Ranger® Technology revenue run rate now over USD $2.0m per annum
- Growth pipeline being converted, including three new NIPT accounts won in H1 and being installed early in H2
• Genomic Services revenues up 26% to £1.9m (H1 FY22: £1.5m)
- NIPT services up 50% to £1.3m on the back of Asia reopening post COVID
- Steady progress in building a broader research and oncology service portfolio
The year-to-date performance and healthy commercial pipeline supports unchanged management revenue expectations for the year as a whole. In line with other businesses in the UK facing inflationary and economic pressures and currency fluctuations, the Company is experiencing some erosion to margins which will only partially be offset by existing measures to mitigate these effects. The Company has prioritised expanding market share in its core markets above near-term margin protection and therefore expects margins to remain below the 60% level previously forecast for the remainder of the financial year.
In line with previous announcements, the Company remains on track to reduce its operating costs by £5m, approximately one-third, in the current financial year when compared to FY22, excluding restructuring expenses. To mitigate the margin pressures, the Board continues to assess its cost base in the context of its pipeline of commercial partnerships and discretionary investment options. The Board is confident that it can further reduce operating costs to achieve positive adjusted EBITDA in the next financial year, and can exercise control over discretionary spending and working capital to manage the Group’s financial position. The necessary decisions will be taken as commercial progress in the second half of the financial year becomes clearer.
Lyn Rees, Chief Executive Officer of Yourgene, commented: “This continues to be a year of transition for Yourgene, with encouraging delivery of top line performance in the first half creating a solid base for expected future growth. It is particularly pleasing that the core business has shown improved momentum in such difficult macroeconomic conditions. Whilst margins have been impacted by the current external environment, we are continuing to reshape the business and are evaluating the best ways to manage costs without constraining future growth where possible. The year-to-date performance informs the Board’s confidence in the business remaining on track to deliver full-year revenues in line with expectations and to prioritise market penetration over near-term EBITDA delivery. Yourgene remains well placed to exploit the opportunities available to its growing portfolio of genomic products and services and, with additional partnerships in place and being added, is expanding its market access to create significant strategic value.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation.
The Directors of the Company take responsibility for this announcement.
Yourgene Health plc
Lyn Rees, Chief Executive Officer
Tel: +44 (0)161 669 8122
Cairn Financial Advisers LLP (NOMAD)
Tel: +44 (0)20 7213 0880
Singer Capital Markets (Corporate Broker)
Tel: +44 (0)20 7496 3000
Walbrook PR Ltd (Media and Investor Relations)
Paul McManus / Lianne Applegarth
Mob: 07980 541 893 Mob: 07584 391 303
About Yourgene Health
Yourgene Health is an international molecular diagnostics group which develops integrated genomic technologies and services enabling precision medicine. The group works in partnership with global leaders in DNA technology to advance diagnostic science.
Yourgene primarily develops, manufactures, and commercialises simple and accurate molecular diagnostic solutions, for reproductive health, precision medicine and now infectious diseases. The Group’s flagship products include non-invasive prenatal tests (NIPT) for Down’s Syndrome and other genetic disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests, and a recent extension into the oncology space with DPYD genotyping.
The Yourgene Genomic Services team works with healthcare professionals, researchers and pharmaceutical organisations to support and accelerate scientific advances in genomic medicine. The division’s specialist services guide decisions about abnormalities, hereditary risk and treatment in addition to providing novel insights in research and discovery. Accredited clinical services are provided in Oncology and Reproductive Health within the UK and worldwide. The team of scientific experts offer consultative services to help guide partners in selecting the right technology and approach for their applications.
In August 2020, Yourgene acquired Coastal Genomics, Inc., a sample preparation technology company based in Vancouver, Canada, enabling the Company to extend its offering and IP portfolio in the DNA sample preparation sector. The acquisition increased Yourgene’s geographical penetration into the US and Canada, supplementing existing coverage in the UK, Europe, MEA and Asia.
Yourgene Health is headquartered in Manchester, UK with offices in Taipei, Singapore, the US and Canada, and is listed on the London Stock Exchange's AIM market under the ticker "YGEN". For more information visit www.yourgene-health.com and follow us on twitter @Yourgene_Health.