13 Jan 2022 07:00
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The persons taking responsibility for this announcement are the Company contacts named below.
Circassia Group plc
Full Year Trading Update
Execution of business strategy delivers EBITDA ahead of expectations
Oxford, UK - 13 January 2022: Circassia Group plc ("Circassia" or "the Group"; AIM: CIR), a medical device company focused on point of care asthma diagnosis and management, today announces a trading update for the year ended 31 December 2021.
Highlights
· Revenue growth of 17% (20% on a constant currency basis) to £27.9m, with recurring revenue of 84%
· Group adjusted EBITDA1 positive for the first time at c. £0.6m, ahead of market expectations
· Net cash £12.6m
· New distribution arrangements in the United States and China to drive further revenue growth
Unaudited revenues for the continuing NIOX business for the year ended 31 December 2021 were up 17% at approximately £27.9m (2020: £23.9m) with underlying revenues (excluding a one-off stocking order in 2019) recovering to 85% of 2019 levels. On a constant currency basis, revenue growth was 20%.
Gross margins were steady at 68% with recurring revenues also consistent with the previous year at 84% of total revenues.
Management continued to implement the new sales and marketing strategy, focussing particularly on partnered distribution in China and the USA. This resulted in a significant reduction in operating costs with total expenditure reducing from £27.4m in 2020 to £18.4m in 2021.
As a result of the top line growth and the reduction in operating expenses, EBITDA for the NIOX business increased significantly to £2.3m (2020: EBITDA loss £6.8m) whilst Group adjusted EBITDA1 was positive for the first time at approximately £0.6m (2020: EBITDA loss £9.1m), ahead of market expectations, which had previously been revised upwards.
The unaudited cash balance at 31 December was £12.6m (2020: £7.4m) with the Group (excluding the discontinued COPD business) generating £1.1m in cash in the second half of the year.
Circassia expects to release its Preliminary Results for the year ended 31 December 2021 on 22 March 2022.
Ian Johnson, Circassia's Executive Chairman, said: "2021 has been a significant year for Circassia with both the NIOX business and the Group achieving positive EBITDA 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."
Contacts
Circassia
Ian Johnson, Executive Chairman Tel: +44 (0) 1865 405 560
Michael Roller, Chief Financial Officer
Singer Capital Markets
Aubrey Powell / Jen Boorer Tel: +44 (0) 20 7496 3000
About Circassia
Circassia is a medical device company focused on point of care asthma diagnosis and management. Our market-leading NIOX® products are used in clinical settings by physicians around the world to improve asthma diagnosis and management and also by leading research organisations conducting clinical studies in behalf of pharmaceutical companies. At present, Circassia provides products and services in around 50 countries. For more information please visit www.circassia.com.
Forward-looking statements
This press release contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Circassia. The use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or "believe" and similar expressions (or the negatives thereof) are generally intended to identify forward-looking statements. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Nothing contained in this press release should be construed as a profit forecast or profit estimate. Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. Circassia undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.