OptiBiotix reports higher revenue, improved margins

(Sharecast News) - OptiBiotix Health reported higher annual revenue and improved margins for 2025 on Thursday, as the life sciences group said it was shifting its focus towards commercial sustainability, cost reduction and higher-growth markets.

The AIM-traded company, which develops products to reduce hunger and food cravings, improve the gut microbiome and provide sweet fibres as sugar substitutes, said revenue rose 34% to £1.17m for the year ended 31 December, from £870,000 in 2024.

OptiBiotix said a further £212,000 of orders received in 2025 were not included in revenue and had been carried forward for delivery in 2026.

Gross profit increased 85% to £614,000 from £331,000, while gross margin improved to 53% from 38%.

Operating costs, including selling, research and development and patent costs but excluding non-cash share-based payments, were slightly higher at just under £2.7m, compared with £2.6m a year earlier.

The company ended the year with cash of £1.04m, up from £739,000, no debt, and a balance sheet of £6.8m, compared with £9.0m in 2024.

Its holdings in ProBiotix Health and SkinBioTherapeutics had a combined market value of £6.45m at the end of December.

OptiBiotix said 2025 saw the launch of SlimBiome in Hydroxycut, which it described as the top-selling weight-loss supplement brand in the US.

It also signed a distribution agreement with a well-known direct-selling weight management company, with an initial order received in the second half and product launch scheduled for the first half of 2026.

The company said Asia was becoming an increasingly important growth market, with 17 products launched and 74 customer projects at various stages of development across six countries.

Revenue from outside the UK rose to 73% of the group total, from 63% a year earlier, while revenue from Asia increased 182% to £268,000 from £95,000.

OptiBiotix also reported progress with SweetBiotix, introducing an optimised enzyme-based production process that it said delivered higher yields, a purer and better-tasting product, and lower ingredient and production costs.

After the year ended, the company received a 24-metric-tonne SlimBiome order from Meelung Trading in Taiwan, to be delivered in roughly three-month intervals during 2026, with payment already received for the first 12 tonnes.

OptiBiotix said it had made a record start to 2026, with more than £800,000 of orders received in January for delivery during the year, including carried-forward orders but excluding ecommerce and subsequent orders.

The company also said Hull University Teaching Hospital had started a clinical study to assess the effect of six weeks of pre-operative WellBiome consumption on time spent in intensive care and potential cost savings for the NHS.

OptiBiotix disposed of 8.9m SkinBioTherapeutics shares after the period ended for total cash consideration of about £787,000, including 1.4m shares sold in March and 7.5m in April.

The company said it was moving away from investing in a broad business across multiple channels and territories, and would instead focus on high-growth areas and commercial sustainability.

It said it expected significant reductions in marketing and selling costs in 2026, with planned cuts to research and development and intellectual property costs expected to save £500,000 to £600,000 a year.

OptiBiotix said changes to production should reduce the cost of producing SlimBiome by 31% for second-quarter orders, with further changes expected to lead to a total cost reduction of 48%.

The board said that should improve gross margin and gross profit.

Chief executive Stephen O'Hara said the company had made good progress in 2025, with growing sales, higher margins, increased gross profit and valuable listed investments.

"The company is now focused on achieving commercial sustainability by accelerating its activities to reduce costs and improve margins whilst continuing to grow its top line in those areas showing high growth and commercialising its second-generation products," he said.

O'Hara said progress on SweetBiotix had continued into 2026, giving the company "a cleaner, purer, better tasting product, and a clearer commercial route to market than previously achieved".

At 1110 BST, shares in OptiBiotix Health were up 9.55% at 6.3p.

Reporting by Josh White for Sharecast.com.

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