SourceBio International plc
(“SourceBio”, the “Company” or the “Group”)
Full Year Trading Update
Full year results ahead of expectations
Strong 82% increase in revenues and approximately 70% increase in adjusted EBITDA1
Robust balance sheet position, cash balance increased fourfold since start of year, debt free
SourceBio International plc (AIM: SBI), the international provider of integrated state of the art laboratory services and products, provides a trading update for the year ended 31 December 2021 confirming considerable growth in both revenues and adjusted EBITDA1.
The Company confirms that full year results will be significantly ahead of market expectations, recording considerable growth in both revenues and unaudited adjusted EBITDA. The Company expects to report, subject to audit, revenues of approximately £92.4 million, an increase of 82% on revenues of £50.7 million recorded in 2020. The Company expects to report adjusted EBITDA1, subject to audit, approximately 70% higher than the adjusted EBITDA of £14.2 million recorded in 2020. Following strong working capital management and robust cash conversion, the Company’s cash position was well ahead of market expectations with cash at 31 December 2021 of £33.3 million (31 December 2020: £8.4 million). The Company remains free of any bank and shareholder borrowings.
As previously reported, the Group’s long-standing business units of Healthcare Diagnostics, Genomics and Stability Storage (together the “Core Divisions”) are all now back to pre-Covid levels of trading and all are poised to accelerate their growth. The Group’s Cellular Pathology testing services saw very solid recovery from Q2 2021, although the pace of growth later in the year was slower than had been anticipated, as COVID-19 continued to impact on the pace of the return of elective surgeries. COVID-19 PCR testing revenues were healthy in the full year but fluctuated considerably during the year. Demand increased dramatically as travel restrictions lifted in late Q2, then reduced in Q4 as Government policy switched from the higher quality PCR testing to lateral flow testing for day two arrivals. They then bounced back in the latter weeks of the year as the Government mandated a return from lateral flow to PCR testing for day 2 arrivals.
The Group has made a solid start to trading in the new year and is optimistic in relation to growth opportunities in the Core Divisions. PCR testing volumes have been subject to the pendulum swings in Government policy regarding PCR or Lateral Flow testing requirements for travel. Forecasting volumes for the Infectious Disease Testing business unit remains difficult for 2022, but the Group remains committed to maximise revenues and cash generation primarily to redeploy towards funding growth opportunities, organic and inorganic, to fuel the continued growth of our Core Division business units.
Full details of the Group’s financial performance for 2021 together with additional information on the outlook for 2022 will be provided in the Company’s preliminary results which it expects to announce on 5 April 2022.
1 Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, and excluding exceptional items and share based payments
Jay LeCoque, Executive Chairman, commented: “I am pleased to report to shareholders substantial revenue and profit growth in 2021, in what has been a record trading year for SourceBio. It is encouraging to see that our base business units have returned to pre-Covid levels of trading and continue to capitalise on significant new growth opportunities. Our Covid-19 testing business performed very well in 2021, particularly given the continued switches in Government policy regarding testing requirements for travel.
“The Company remains well capitalised and has benefitted from very strong cash conversion driving cash balances to over £33 million. With a balance sheet free of borrowings, the Group is well positioned to fuel further growth in 2022 through our Core Divisions and to contemplate attractive acquisition opportunities. The Board is appreciative of the dedication and efforts from all its staff in a very challenging year and is also grateful for the support from its shareholders. We look forward to updating shareholders in more detail in due course.”
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
|SourceBio International plc||www.sourcebiointernational.com|
|Jay LeCoque, Executive Chairman||Via Walbrook PR|
|Tony Ratcliffe, Chief Financial Officer|
|Liberum (Nominated Adviser and Broker)||Tel: 020 3100 2000|
|Bidhi Bhoma / Richard Lindley|
|Walbrook PR Limited||Tel: 020 7933 8780 or firstname.lastname@example.org|
|Paul McManus / Sam Allen||Mob: 07980 541 893 / 07748 651 727|
About SourceBio International plc www.sourcebiointernational.com
SourceBio is a leading international provider of integrated state-of-the-art laboratory services and products with clients in the healthcare, clinical, life science research and biopharma industries, with a focus on improving patient diagnosis, management and care. Group revenues are derived from four core businesses areas:
- Infectious Disease Testing – a range of COVID-19 testing services for commercial enterprises, private healthcare groups, NHS and the DHSC. Utilising multiple technologies, SourceBio offers screening, gold standard RT-PCR and whole genome sequencing COVID-19 testing solutions and operates under ISO 15189 accreditation required by the DHSC. SourceBio also provides employee testing solutions to industry, direct to consumer home test kits (including ‘Fit to Fly’, ‘Test to Release’ and ‘2 & 8 Day International Travel’ approved tests) and venue testing.
- Healthcare Diagnostics – histopathology cancer screening and clinical diagnostic services for the NHS and private healthcare across the UK and Ireland.
- Genomics – DNA sequencing services for pharmaceutical and biotechnology companies, academia, contract research organisations (CROs) and other research groups in the UK, Europe and North America.
- Stability Storage – shelf-life testing services and equipment for pharmaceutical and biotechnology companies, contract manufacturers and analytical testing companies from around the world but primarily in the UK, Ireland and the USA.
More details on Group operations can be found here: www.sourcebioscience.com.
SourceBio International plc (SBI) is listed on the AIM market of the London Stock Exchange.