24 Jul 2019 07:00
RNS
Horizon Discovery Group plc
Trading Update
Cambridge, UK, 24 July 2019: Horizon Discovery Group plc (LSE: HZD) ("Horizon" or "the Group"), a global leader in the application of gene editing and gene modulation technologies, today provides a trading update for the six month period ended 30 June 2019. The Group will report its Half Year results on Monday 16 September 2019.
The Group continues to perform well and is trading in line with expectations for the full year. Group revenues for the six months ended 30 June 2019 are expected to be £28.6m (HY18: £25.1m) representing 13.7% growth on the same period in the prior year and 8.6% growth on a constant currency basis. Gross margin is expected to be in excess of 65% (HY18: 63%).
At the Half Year results in September, the Group will report against its new market-aligned business unit structure, comprising Research Reagents, Bioproduction, Diagnostics, Screening and In Vivo, as announced in the Full Year results published on 29 April 2019.
Revenue growth for the first six months has largely been driven by a strong performance in the Group's Bioproduction and Screening business units. The Diagnostics business unit had a soft first half as a result of some internal organisational challenges. These issues have been identified and necessary corrective action has been taken.
The Group has a customary second-half weighting to trading due to the markets it operates in and the Board expects FY19 revenues to be in-line with current market expectations and expects to maintain a positive EBITDA performance for the full year.
The cash balance at 30 June 2019 was £24.8m (HY18: £24.9m).
Terry Pizzie, Chief Executive Officer of Horizon Discovery, commented:
"Horizon has made a good start to the year and the business as a whole is performing well, with Group revenue and margin in-line with our expectations and a notably strong performance from the Bioproduction and Screening business units. We have experienced some organisational challenges with our Diagnostics business unit, but the corrective action that we have put in place should lead to an improved performance in the second half.
"With our natural second-half weighting and strong order book for the remainder of 2019, we are well positioned to execute our growth strategy as we continue to transform Horizon into a fully commercial tools company."
Ends
For further information from Horizon Discovery Group plc, please contact:
Horizon Discovery Group plc
Terry Pizzie, Chief Executive Officer
Jayesh Pankhania, Chief Financial Officer
Jon Davies, Head of Investor Relations
Tel: +44 (0) 1223 655 580
Numis Securities Limited (Broker and NOMAD)
Freddie Barnfield / Tom Ballard / 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 5700
Email: horizon@consilium-comms.com
About Horizon Discovery Group plc www.horizondiscovery.com
Horizon Discovery Group plc (LSE: HZD) ("Horizon") drives the application of gene editing and gene modulation within the global life science market - supporting scientists on the path from research to therapy.
Built upon more than a decade of experience in the engineering of cell lines, Horizon offers an unmatched portfolio of tools and services to help scientists gain a greater understanding of gene function, identify genetic drivers behind human disease, deliver biotherapeutics, cellular and gene therapies for precision medicine as well as develop and validate diagnostic workflows.
Horizon's solutions enable almost any gene to be altered, or its function modulated, in human and other mammalian cell lines.
The Company's customers include many of the world's foremost academic institutes, global pharmaceutical and biotechnology companies as well as clinical diagnostic laboratories. Insight into the challenges faced by these organizations enables Horizon to focus efforts on development of innovative solutions that not only differentiate the Company's offering, but also fuel development of the next wave of precision medicines.
Horizon is headquartered in Cambridge, UK with offices in USA and Japan. The Group is listed on the London Stock Exchange's AIM market under the ticker HZD.