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(Sharecast News) - Medical device company Niox Group said in a trading update on Thursday that it experienced substantial revenue growth in 2023, with a reported increase of 18% to £36.8m.
The AIM-traded firm said that on a constant currency basis, revenue growth was even more robust, standing at 22%.
It noted the majority of its sales are not invoiced in sterling, leading to revenue fluctuations influenced by exchange rates.
Clinical revenue, a significant portion of its earnings, increased by 24% to £32.6m, and on a constant currency basis, the growth amounted to 29%.
However, research revenues declined 18% to £4.2m, or by 14% when considering constant exchange rates.
The company reported an improvement in gross margins, with an increase from 71% in 2022 to 72% in 2023.
Recurring test kit revenues for the clinical business remained a significant contributor, representing 92% of clinical sales.
Adjusted EBITDA for the group reached £11.4m in 2023, compared to £7.3m in 2022, aligning with the consensus market expectations, which were revised upwards twice during the year.
Niox said it ended the year with a net cash balance of £19.9m, slightly up from £19.4m at the end of 2022.
The company's continuing activities generated £11m of operating cash flow during the year.
Discontinued activities resulted in a cash outflow of £2m, and the firm paid a special dividend of £10.5m and received $3.5m from Beyond Air as part of a relevant settlement agreement.
"I am pleased to report continued strong growth in revenues and profits which were driven by our core clinical business," said executive chairman Ian Johnson.
"All three geographic areas generated good growth in the year.
"Our manufacturing partner also started work on the development of the next generation Niox Pro device, which is expected to be launched in 2025."
Johnson said that during 2024, management's focus was on growing revenues in the US, expanding into new healthcare professional channels, and developing a product for home-use.
"The board believes that the company's robust business model will continue to deliver profitable growth and drive further shareholder value."
Niox said it would release its preliminary results for the year ended 31 December on 26 March.
At 1439 GMT, shares in Niox Group were down 3.94% at 60.52p.
Reporting by Josh White for Sharecast.com.
