NIOX Group sees strong growth in core clinical business in first half
Oxford-based medtech company NIOX Group said it saw strong growth in its first half, particularly in its core clinical business.
The company, which is behind the NIOX VERO device to diagnose and manage asthma, said clinical revenues grew 29% to around £16.7 million in the six months to June 30, compared to £13 million in the first half of 2022.
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This strong growth in clinical revenues and improved gross margins led to adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of around £6.2 million in the first half compared with £3.2 million in the same period a year earlier, the company said.
It highlighted that it was now "generating sufficient operating cashflow" to develop the business and pay ongoing dividends.
A special dividend of 2.5p per share (equating to a return of cash of around £10.5 million) will be paid on September 15 this year.
"I am pleased to report continued growth in revenues and profits in the first half of the current financial year," said NIOX's executive chairman Ian Johnson in the trading update.
"It is particularly satisfying to describe the strong growth in our core Clinical business, which continues to benefit from a high degree of recurring revenues.
"We indicated at the time of our AGM in May that adjusted EBITDA would be significantly higher than management expectations at the start of the year.
"After two further full months of strong trading, particularly in the APAC region, management's expectations for the year end outturn have been subject to further material upgrade."
Across the group, unaudited revenues for the six months came in at around £18.8 million, up 22% on the same period last year, while unaudited net cash on June 30 stood at £23.8 million.
NIOX said it expected to release its results for the six months to end-June on September 26, this year.
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