Niox Group reports solid growth in final results
By Josh White
Date: Tuesday 26 Mar 2024
(Sharecast News) - Niox Group reported a robust 18% increase in revenue in its final results on Tuesday, amounting to £36.8m compared to £31.3m in the prior year.
The AIM-traded firm said when adjusted for currency fluctuations, that growth surged to an impressive 22%.
Clinical revenue demonstrated substantial growth of 24%, reaching £32.6m, up from £26.2m in 2022.
The group's adjusted EBITDA stood at £11.4m, aligning with upgraded consensus estimates and marking a significant progression from £7.3m in 2022.
Niox also maintained a healthy net cash position of £19.9m at year-end on 31 December.
Shareholders were rewarded with a special dividend of 2.5p per share, totaling £10.5m, disbursed on 15 September, with the board proposing a final dividend of 1p per share.
Operationally, Niox established a new commercial organisation and distributor network in the US during the year, with a focus on enhancing revenues within primary care settings.
Furthermore, efforts to strengthen market presence were evident through the expansion of the distributor network in the EMEA and APAC regions.
Development for Niox Pro, the next-generation device tailored for clinical professionals, was started, as the company achieved a significant milestone with a $3.5m payment received from Beyond Air in August, with a final payment of $4.5m expected by August this year, along with potential royalty payments of up to $6m thereafter.
"Management is continuing to implement the strategy of deepening and broadening global distribution, which coupled with outsourcing sales and manufacturing is expected to drive further profitable growth," said executive chairman Ian Johnson.
"Whilst the current focus is on growing sales in primary care, looking ahead, the company plans to introduce FeNO testing in other healthcare channels such a pharmacies and occupational health and ultimately to launch a product for use by patients to manage their condition at home."
Johnson said the group had made a positive start to 2024, and continued to be highly cash generative, with cash of £22.4m on 29 February.
"The company has a robust strategy in place to expand the business and generate profitable growth from the large underserved target market and has the financial resources to achieve its objectives and further enhance shareholder value."
At 1400 GMT, shares in Niox Group were up 1.39% at 65.7p.
Reporting by Josh White for Sharecast.com.
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