LONDON (ShareCast) - (Sharecast News) - Niox Group reported a solid set of full-year results for 2024 on Tuesday, with double-digit revenue growth, increased profitability and expanded shareholder returns.
The AIM-listed medical device company also confirmed it was in preliminary discussions with Keensight Capital following a possible takeover proposal.

It said revenue for the year rose 14% to £41.8m, or 16% on a constant currency basis, driven by an 11% increase in clinical revenue to £36.1m.

Adjusted EBITDA grew 21% year-on-year to £13.8m, ahead of consensus expectations.

The company sold 6.3 million Niox FeNO tests, up 19% from 2023, reflecting growing demand for its asthma diagnostics solutions.

During the year, Niox returned £25.2m to shareholders through a £4.2m dividend and a £21m tender offer.

The board recommended a further final dividend of 1.25p per share, and also revised its capital allocation policy to increase future cash returns.

Net cash stood at £10.9m at year-end, down from £19.9m, primarily due to the shareholder distributions.

Operationally, the company said it made progress on several initiatives, including development of its next-generation Niox PRO device, targeted for launch in the fourth quarter of 2025, and the Niox MyNO home-use product.

It also signed a letter of intent with its sensor manufacturer to expand production capacity and support future growth.

On 20 March, Niox confirmed it had received a proposal from Keensight Capital regarding a possible all-cash acquisition at 81p per share, inclusive of any future dividends.

The proposal remained subject to due diligence and other pre-conditions, with discussions at a preliminary stage.

Niox noted there was no certainty that a firm offer would be made, or on what terms.

"2024 was another good year for the group," said executive chairman Ian Johnson, noting that all three of the company's geographic regions grew revenue, with Asia-Pacific leading the way.

"Our new Nion PRO device, which has been under development for the past two years, remains on track for first launch markets in the final quarter of 2025.

"The Niox PRO will be the group's first new product for 12 years and offers improved ease of use and superior connectivity compared with the Niox VERO while utilising the same technology and being fully backwards compatible with the Niox VERO sensors and accessories."

Johnson said the company had signed a letter of intent with the manufacturer of its Niox sensor to invest in equipment required to increase the manufacturing capacity of the exclusive Niox VERO sensor at its new, expanded facility to meet long term demand and to fund the development of an all-new sensor for the Niox MyNO home-use device.

"The board has decided to adopt a policy with regard to the return of cash to shareholders, given that for some time the group has generated cash in excess of its investment needs.

"The first opportunity to utilise this policy is likely to be towards the end of the current financial year.

"Going forward, the group will, on a rolling basis, return 80% of free cash flow to shareholders in the medium term, through ordinary dividend payments and additional cash returns."

At 1000 GMT, shares in Niox Group were up 0.53% at 76.4p.

Reporting by Josh White for Sharecast.com.

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