TIDMSBI
RNS Number : 9338L
SourceBio International PLC
18 January 2021
SourceBio International plc
("SourceBio", the "Company" or the "Group")
Trading Update
Full year results in-line with expectations
Almost fivefold increase in adjusted EBITDA and strong balance
sheet position
SourceBio International plc (AIM: SBI), the international
provider of integrated state of the art laboratory services and
products , provides the following trading update for the year ended
31 December 2020.
The Company confirms that full year results will be in line with
market expectations, recording considerable growth in both revenues
and EBITDA year-on-year. The Company expects to report, subject to
audit, revenues of approximately GBP50.7 million, compared to
revenues of GBP21.2 million recorded in 2019. Adjusted EBITDA (1)
for the year ended 31 December 2020, subject to audit, was
approximately GBP14.0 million, an almost fivefold increase on 2019
(2019: GBP3.0 million). Following careful working capital
management, the Company's cash position was well ahead of market
expectations with cash at 31 December 2020 of GBP8.4 million (31
December 2019: GBP1.2 million). At the year end the Company had
also eliminated all outstanding bank and shareholder borrowings,
compared to borrowings on 31 December 2019 of GBP95.9 million.
In addition, trading has started strongly in 2021. Whilst the
Company still awaits a potential formal award under Public Health
England's National Microbiology Framework in relation to further
COVID-19 testing services, the Company is pleased to announce that
it has signed a surge capacity agreement with the Department of
Health and Social Care ("DHSC") for the supply of COVID-19 antigen
RT-PCR testing services using the Company's laboratory facility in
Nottingham (the "Agreement"). Under the Agreement, SourceBio has
been supplying testing services since mid-December, and could
potentially process up to a maximum of 4,000 RT-PCR tests for
SARS-CoV-2 Virus a day. This surge capacity agreement, which has a
maximum value of GBP7.6 million, expires on 13 February 2021 and
may be extended for a further three months. SourceBio has already
processed over 400,000 COVID-19 antigen RT-PCR tests for the DHSC
and the NHS.
As the country has entered a third national lockdown and the
severity of the COVID-19 landscape continues to cause delays in
elective surgeries, the Company is anticipating reduced demand for
its Cellular Pathology testing services into the new year and until
the COVID-19 pandemic is under more control. Following recent
announcements, the Company continues to explore further COVID-19
testing service capabilities and expand technology platforms and
expects the strength of COVID-19 related revenues to counteract any
impact on the Cellular Pathology business. Therefore, the Board's
expectation for continued significant earnings growth for 2021
across the Group as a whole remains unchanged.
Full details of the Group's financial performance for 2020
together with a fuller outlook for 2021 will be provided in the
Company's preliminary results which it expects to announce in April
2021, with the precise date to be confirmed in a subsequent
announcement.
Jay LeCoque, Executive Chairman, commented: "I am pleased to
report to shareholders significant revenue growth with dramatically
increased profitability in an extremely busy year for SourceBio,
that included a successful AIM listing in October. The results have
been dominated by robust COVID-19 testing services and, given the
impact of the COVID-19 pandemic, the Board remains pleased with
performance across all areas of the business. The Company remains
strongly capitalised with a loan free balance sheet which positions
us well to deliver further aggressive growth in 2021. The Board is
appreciative of the strong support from both long standing and new
shareholders and we look forward to updating shareholders in more
detail in due course."
(1) Adjusted EBITDA comprises earnings before interest, tax,
depreciation and amortisation, and excluding exceptional costs,
which for 2020 comprised IPO related expenses
Contacts:
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
Joshua Hughes
Euan Brown
Walbrook PR Limited Tel: 020 7933 8780 or sourcebio@walbrookpr.com
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 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:
-- Healthcare Diagnostics - histopathology 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; and
-- Infectious Disease Testing - since May 2020, the Group has
provided COVID-19 Antigen RT-PCR testing services. These services
passed all of the auditing requirements of the NHS and the
Department of Health and Social Care (DHSC) in April 2020. It is
intended that this offering will potentially provide a broad range
of infectious disease testing across the NHS, private healthcare
and commercial sectors in the future.
More details on Group operations can be found here:
www.sourcebioscience.com
SourceBio International plc (SBI.L) is listed on the AIM market
of the London Stock Exchange.
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