The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHZD.L Regulatory News (HZD)

  • There is currently no data for HZD

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Pre-Close Trading Update

3 Aug 2018 07:00

RNS Number : 7076W
Horizon Discovery Group plc
03 August 2018
 

Horizon Discovery Group plc

 

Pre-Close Trading Update

 

Cambridge, UK, 3 August 2018: Horizon Discovery Group plc (LSE: HZD) ("Horizon" or "the Group"), a global leader in the application of gene editing and gene modulation technologies, today announces an unaudited trading update for the six months ended 30 June 2018. The Group will announce its interim results on Monday 17 September 2018.

 

Group Financials

The Group expects to report H1 2018 revenues of approximately £25.1 million (H1 2017: £12.1 million), £27.3 million on a constant currency basis, in line with Board expectations. This represents growth of 107% against the equivalent prior period, 126% on a constant currency basis. Revenues on a like-for-like basis (pre-acquisition of Dharmacon) are expected to be approximately £11.1 million (H1 2017: 12.1 million), £12.0 million on a constant currency basis. We expect revenues to be second half weighted, consistent with previous years, and exceed consensus for FY 2018.

 

Reported gross margins for H1 2018 are expected to exceed 60% (H1 2017: 64%), representing three consecutive interim periods of gross margins in excess of 60%. The Group had cash resources of £24.9 million as at 30 June 2018 (£4.8 million as at 30 June 2017).

 

Growth and Investment Strategy

Horizon continues to operate in fast-growing markets and is a global leader in its field. Gene editing is rapidly becoming embedded as a fundamental contributor to the R&D, manufacture and diagnostics for targeted therapies across the global healthcare sector. As part of its growth strategy, the Group identifies and pursues new high growth market areas to meet the requirements of its rapidly growing customer base, and to deliver substantial value for its customers through novel product and service offerings that generate repeatable revenue.

 

In order to maximise medium and longer-term shareholder value creation, the Board considers the Group's position will be enhanced by gaining a commanding share of its most rapidly-growing markets. To achieve this, the Board has committed to make increased investments that capture the available opportunity, provide further automation and scale and deliver enhanced customer solutions.

 

As a result of these investments, the Group expects to report positive EBITDA for FY 2018 before exceptional items below the current range of analysts' expectations. The Group expects to report negative EBITDA before exceptional items in H1 2018 due to the phasing and mix of revenue, which is anticipated to be exceeded by positive EBITDA in H2 2018. Further commentary around this growth strategy will be provided at the Group's interim results.

 

Business Units

Research products

Research products are expected to report revenues of approximately £15.3 million (H1 2017: £2.0 million), £16.7 million on a constant currency basis. Dharmacon revenues were approximately £14.0 million, £15.3 million on a constant currency basis, representing a return to single digit revenue growth driven by market share gains in RNAi in all territories and growth in CRISPR reagents.

 

Applied products

Applied products are expected to report revenues of approximately £4.6 million (H1 2017: £3.3 million), £5.0 million on a constant currency basis. The bioproduction business benefitted from increased volumes of commercial licences following the successful Investigational New Drug (IND) filing relating to Horizon's bioproduction cell line during Q1 2018. Revenues from Horizon's molecular reference standards also continued to grow strongly during the period. The Group anticipates continued momentum following a strong start to H2 2018.

 

Services

Service revenues are expected to be approximately £5.2 million (H1 2017: £6.8 million), £5.6 million on a constant currency basis. Demand for gene editing services remains strong, however, as we anticipated, we are now seeing a transition away from our traditional screening services towards the rapidly growing and highly valuable emerging area of CRISPR screening, in which Horizon has a market leading capability and is developing a high quality forward order book. We have begun to consolidate our existing screening capabilities and further develop our gene editing capacity with a view to increasing the automation and scalability of these high growth service areas.

 

Board Change

Following the appointment of Terry Pizzie as CEO on 8 May 2018, Dr Ian Gilham will revert from executive to non-executive Chairman with immediate effect.

 

Terry Pizzie, Chief Executive Officer of Horizon Discovery, commented: "The first half of 2018 has been an important period for Horizon, not only with the change in leadership but also with our continued transformation into a global, commercial and scalable business. Horizon is a world-class tools and services business focused on delivering commercial, scientific and operational excellence for customers in the dynamic and rapidly growing field of gene editing and gene modulation.

 

"This is an exciting time for the business. As gene editing continues to industrialise, we are well positioned to benefit from further investment in our high value and rapidly growing segments of the market, and I look forward to talking more about our growth strategies at our interim results in September. With the commercial structure and leadership in place, I am excited for and confident in the short and long-term growth prospects for Horizon."

 

ENDS

 

For further information from Horizon Discovery Group plc, please contact:

 

Horizon Discovery Group plc

Terry Pizzie, Chief Executive Officer

Richard Vellacott, Chief Financial Officer

Tel: +44 (0) 1223 655 580

 

Numis Securities Limited (Broker and NOMAD)

Michael Meade / Freddie Barnfield / Duncan Monteith

Tel: +44 (0) 207 260 1000

 

Consilium Strategic Communications (Financial Media and Investor Relations)

Mary-Jane Elliott / Matthew Neal / Melissa Gardiner

Tel: +44 (0) 20 3709 5701

Email: horizon@consilium-comms.com

 

 

 

 

About Horizon Discovery Group plc www.horizondiscovery.com

 

Horizon Discovery Group plc (LSE: HZD) ("Horizon") is a world leader in gene editing and gene modulation technologies. Horizon designs and engineers cells using its translational genomics platform, a highly precise and flexible suite of DNA editing tools (rAAV, ZFN, CRISPR and Transposon) and, following the acquisition of Dharmacon, Inc., its functional genomics platform comprising gene knockdown (RNAi) and gene expression (cDNA, ORF) tools, for research and clinical applications that advance human health. Horizon's platforms and capabilities enable researchers to alter almost any gene or modulate its function in human or mammalian cell-lines.

 

Horizon offers an extensive range of catalogue products and related research services to support a greater understanding of the function of genes across all species and the genetic drivers of human disease and the development of personalised molecular, cell and gene therapies. These have been adopted by over 10,000 academic, drug discovery, drug manufacturing and clinical diagnostics customers around the globe, as well as in the Company's own R&D pipeline.

 

Horizon is headquartered in Cambridge, UK, and is listed on the London Stock Exchange's AIM market under the tic

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTDBGDIDGGBGID
Date   Source Headline
16th Jan 20177:00 amRNSHorizon broadens gene editing capabilities
13th Jan 20177:00 amRNSAdditional Listing
6th Jan 20171:24 pmRNSAdditional Listing
29th Dec 201610:28 amRNSHolding(s) in Company
15th Dec 20167:00 amRNSAdditional Listing
2nd Dec 201611:30 amRNSDirector/PDMR Shareholding
2nd Dec 201610:00 amRNSDirector Dealings
16th Nov 20167:00 amRNSHZD Enters Chinese Clinical Diagnostics Market
14th Nov 20167:00 amRNSAdditional Listing
9th Nov 20167:00 amRNSOEM Agreement with CareDx for Reference Standards
1st Nov 20167:00 amRNSProgress Update: Molecular Screening Platform
31st Oct 201612:36 pmRNSAdditional Listing
19th Oct 20167:00 amRNSLicensing Agreement: Biomanufacturing Cell Lines
10th Oct 20167:00 amRNSAdditional Listing
30th Sep 20163:25 pmRNSHolding(s) in Company
30th Sep 20167:00 amRNSAdditional Listing
23rd Sep 20161:46 pmRNSHolding(s) in Company
21st Sep 20165:28 pmRNSHolding(s) in Company
20th Sep 20167:00 amRNSInterim Results for Six Months Ended 30 June 2016
13th Sep 20169:04 amRNSHolding(s) in Company
13th Sep 20167:00 amRNSBiomanufacturing Cell Lines Licensed to CPI, NIBRT
12th Sep 201611:04 amRNSHolding(s) in Company
7th Sep 201612:19 pmRNSHolding(s) in Company
7th Sep 20167:02 amRNSNotice of Interim Results
7th Sep 20167:00 amRNSAdditional Listing
6th Sep 201612:31 pmRNSHolding(s) in Company
6th Sep 20167:00 amRNSCRISPR Collaboration with Fulcrum Therapeutics
1st Sep 20167:00 amRNSHZD and Ventana Sign Reference Standards Agreement
18th Aug 20167:00 amRNSAdditional Listing
16th Aug 20164:09 pmRNSHolding(s) in Company
3rd Aug 20163:26 pmRNSHolding(s) in Company
29th Jul 20163:31 pmRNSHolding(s) in Company
28th Jul 20167:00 amRNSHorizon Discovery Group Issue of Equity
26th Jul 201610:47 amRNSAdditional Listing
21st Jul 20169:11 amRNSAdditional Listing
13th Jul 20161:20 pmRNSHoldings in Company
7th Jul 20169:17 amRNSHoldings in Company
4th Jul 20164:33 pmRNSHoldings in Company
29th Jun 20164:01 pmRNSAdditional Listing
28th Jun 20167:00 amRNSAdditional Listing
24th Jun 201611:20 amRNSResult of AGM
9th Jun 20162:21 pmRNSGrant of Options
7th Jun 20165:19 pmRNSAnnual Report and Notice of Annual General Meeting
3rd Jun 20167:00 amRNSAdditional Listing
1st Jun 20167:00 amRNSReference Standards used in QIAGEN NGS System
12th May 20167:00 amRNSOEM Agreements with Market Leading NGS Company
11th May 20167:00 amRNSAdditional Listing
28th Apr 20167:45 amRNSAdditional Listing
26th Apr 20167:35 amRNSPreliminary Results for the Year Ended 31 Dec 2015
19th Apr 20167:00 amRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.