TIDMCIR
RNS Number : 9909E
Circassia Group Plc
13 July 2021
Circassia Group plc
First Half Trading Update
Business strategy drives H1 revenue and profit growth
Oxford, UK - 13 July 2021: Circassia Group plc ("Circassia" or
"the Company"; LSE: CIR), a medical device company focused on point
of care asthma diagnosis and management, today announces a trading
update for the six months ended 30 June 2021 ("H1 2021").
Highlights
-- Revenue growth of 27%
-- NIOX business EBITDA positive for first time (excluding corporate costs)
-- Net cash GBP11.3m
-- Completion of runoff period for Tudorza and Duaklir
-- Settlement of Beyond Air dispute, with potential upside to Circassia
Management has continued to implement its business strategy,
focussing exclusively on Niox. Unaudited revenues for the Niox
business for the six months ended 30 June 2021 were approximately
GBP14.5m, up 27% on the same period last year (H1 2020: GBP11.4m)
and up 16% on H2 2020 (GBP12.5m).
Clinical revenues were up 16% to approximately GBP12.1m (H1
2020: GBP10.5m) and up 10% on H2 2020 (GBP11.0m), as more patients
were able to visit their physician. Whilst Clinical revenues are
yet to return fully to pre-COVID levels, sales in the first half of
2021 were approximately 84% of underlying sales in H1 2019. H1 2021
Clinical revenue included a one-off GBP0.6m benefit arising from
the final unwinding of certain historical trading arrangements in
China.
The Research business made a strong start to the year as
clinical studies run by our customers resumed. Revenues were more
than double those of H1 2020 at GBP2.4m (H1 2020: GBP0.9m), up 50%
on H2 2020 (GBP1.6m) and up 9% on the first half of 2019
(GBP2.2m).
The discontinued COPD business traded profitably during the
first quarter, with the transfer of these products back to
AstraZeneca completed on 31 March 2021.
Management has also changed the sales and marketing strategy to
reduce fixed costs by putting greater emphasis on third party
distribution. Tight cost control and changing the business model
has resulted in a dramatic 34% reduction in overheads, from almost
GBP14.0m in H1 2020 to approximately GBP9.2m in H1 2021. This,
together with the impact of the GBP0.6m one-off item referred to
above, has resulted in a corresponding improvement in H1 2021
EBITDA to approximately GBP0.5m for the Niox business (before
corporate overheads) compared with an EBITDA loss of GBP4.8m in H1
2020.
Unaudited net cash at 30 June 2021 was GBP11.3m (31 December
2020: GBP7.4m) with the Group having a net cash outflow of GBP1.1m
in the period. Additionally, the Company raised GBP5.0m in equity
in March 2021. As previously announced on 26 May and subject to FDA
approval of their product, the settlement reached with Beyond Air,
Inc. will provide further cash resources of up to $16.5m over
time.
Circassia expects to release its interim results for the six
months ended 30 June 2021 on 16 September 2021.
Ian Johnson, Circassia's Executive Chairman, said: "We are
pleased to report that the Niox business has turned a corner and,
with the building blocks now in place, is profitable at the EBITDA
level for the first time in the history of the Company. Management
continues to implement the new business model to generate top line
growth and to drive further benefit from the significantly reduced
cost base in the second half.
"Accordingly the Board believes that, notwithstanding revenue
visibility continuing to be limited, the Company's full year EBITDA
performance is likely to be ahead of current market
expectations."
This announcement contains inside information for the purposes
of Article 7 of the UK Market Abuse Regulations.
The Directors of the Company take responsibility for this
announcement.
Contacts
Circassia
Ian Johnson, Executive Chairman Tel: +44 (0) 1865 405 560
Michael Roller, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker)
Aubrey Powell/ Jen Boorer/ Hannah Woodley 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(R)
products are used in clinical settings by physicians around the
world to improve asthma diagnosis and management and by leading
research organisations conducting clinical studies on 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.
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END
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