Genedrive loss narrowed after double-digit revenue rise

(Sharecast News) - Genedrive on Thursday reported a narrowed annual loss as revenues jumped as its commercial relationship with the US department of defense (DoD) exceeded expectations.
The near patient molecular diagnostics company booked a loss before tax of £4.5m for the year ended 30 June, compared to £7.8m of red ink for the year before, as sales leapt by 22% to £2.4m.

Top line growth came as Genedrive fulfilled £0.9m of orders for its pathogen kit from the US DoD, with the relationship exceeding expectations and further shipments set to be delivered in the coming months.

However, the AIM traded company said sales of HCV assays were lower than expected due to a slower than anticipated rate of country registrations and the overall level of funding for HCV drugs and diagnostics.

Genedrive said it now expects the revenue ramp for the assay to occur in the year to June 2020, with the company increasing its focus on countries where the opportunity looks likely to grow.

Cash and cash equivalents stood at £5.2m at the end of the year, up from £3.5m at the same point 12 months prior after the company strengthened its balance sheet with a £6.0m fundraising in December.

David Budd, chief executive of Genedrive, said: "With two assays now on market and two assays in development, we continue to make good progress on delivering our strategy. On behalf of the board, I would like to thank our shareholders for their continued support during the year and we look forward to an exciting future."

Genedrive shares were up 6.06% at 17.50p at 0944 BST.