Circassia achieves positive earnings for first time after revenue rise

(Alliance News) - Circassia Group PLC announced on Thursday that it is now cash generative and debt free following strong full-year trading.

The Oxford, England-based medical device company, which focuses on point of care asthma diagnosis and management, reported revenue of GBP27.9 million in 2021, up 17% from GBP23.9 million in 2020.

Circassia added that underlying revenue had recovered to 85% of its 2019 levels, the last pre-pandemic. It explained that new distribution arrangements in the US and China would continue to drive revenue growth moving forward.

The company also reported its first positive adjusted earnings before interest, tax, depreciation and amortisation at GBP600,000. This signalled a return from a loss of GBP9.1 million in 2020 and was ahead of market expectations.

Circassia's cash balance at December 31 was GBP12.6 million, up 70% from GBP7.4 million the previous year.

The company said it expects to release preliminary results for 2021 on March 22.

Executive Chair Ian Johnson said: "2021 has been a significant year for Circassia with both the NIOX business and the group achieving positive earnings before interest, tax, depreciation and amortisation for the first time. The group is now cash generative and debt free.

With the global pandemic set to continue into 2022, the much-reduced cost base, high levels of recurring revenues and high gross margins provide a considerable degree of resilience. The board believes that these attributes, together with the measures taken to drive top line growth, will deliver further shareholder value over the medium term."

Shares in Circassia Group PLC were down 2.3% at 45.00 pence on Thursday afternoon in London.

By Heather Rydings; heatherrydings@alliancenews.com

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