(Alliance News) – Diaceutics PLC on Tuesday praised its DXRX platform for helping drive healthy growth in both revenue and earnings for the year.
The testing laboratories company expects to post revenue of around GBP13.9 million for 2021, up 10% from the previous year and 2% ahead of market expectations.
Adjusted earnings before interest, tax, depreciation and amortisation widened sharply to GBP2.1 million from GBP500,000 in 2020.
Shares were 6.2% higher at 110.00 pence in London on Tuesday morning.
Diaceutics hailed DXRX, which integrates diagnostic testing data from a global network of laboratories, for driving growth.
The platform delivered 57% of total revenue in 2021, significantly ahead of the initial target of 20% set in 2020. As a result of its success, the quality of revenue also improved, Diaceutics said, driven by a significant shift towards licence income which has a higher gross margin.
"It has been evident as the year progressed, that we are building a strong base business resulting in a growing contracted backlog and sales pipeline going into 2022, providing us with the confidence to continue investing in the platform to capture this significant opportunity," said Peter Keeling, Diaceutics' chief executive.
Separately, Diaceutics announced the appointment of Nick Roberts as chief financial officer, effective from mid-March.
Roberts is currently head of group reporting at AIM-listed Ergomed PLC, a specialist clinical trial service provider to the pharmaceutical and biotechnology industries.
Current Chief Financial Officer Philip White will remain with the business until the end of April to provide for an orderly handover of duties.
The group's annual results will be announced on March 22.
By Will Paige; willpaige@alliancenews.com
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Diaceutics (DXRX)