MyHealthChecked reports strong fourth quarter of trading
By Josh White
Date: Monday 24 Jan 2022
(Sharecast News) - Consumer medical home-testing company MyHealthChecked confirmed in an update on Monday that it continued to experience strong trading throughout the fourth quarter of 2021, due to increased demand for reinstated day-two arrivals PCR test kits, as well as the launch of its rapid antigen test and verification service for inbound and outbound travellers.
The AIM-traded firm said that as a result, it was now confident that its full-year performance would be higher than previous guidance, with revenues of around £16.3m anticipated, compared to £49.5k in the 2020 financial year.
It said it expected an adjusted EBITDA profit of at least £2.5m, swinging from a 2020 loss of £2.7m.
The board said the business would be cash generative for the year, adding that it expected cash balances to be at least £6.3m at year-end on 31 December, up from £0.47m a year earlier, which it put down to "good working capital management", and stronger-than-expected cash conversion in the final quarter.
MyHealthChecked said it had worked through the year to address the opportunities that the Covid-19 pandemic presented, describing the necessity to be "extremely responsive" in an unpredictable testing market, which required an adaptable approach across a number of commercial channels.
The company said it was continuing to build relationships with major UK pharmacy retail groups, having reportedly established a reputation for reliability as a commercial partner.
It said that AAH Pharmaceuticals, trading as Lloyds Pharmacy, would soon launch the firm's rapid antigen test and verification service, accompanying the portfolio of PCR kits that the pharmacy began selling online in August.
The introduction of the verification service provided with MyHealthChecked's rapid antigen testing service had created increased demand on the company's operational resources, but also provided opportunity for expansion, the board said.
To support that, the company was "actively recruiting" for key operational, technical and digital roles, as well as growing its commercial team as it commercialised its at-home wellness testing products in 2022.
MyHealthChecked said it was "firmly focussed" on reinvesting 2021 earnings into its new product pipeline of at-home wellness tests.
The company said it was working on a pipeline of products, and was on track to launch five new at-home wellness tests in the first half of 2022, focussing on the areas of weight management, vitamin deficiency, food intolerances, heart health and blood glucose, while continuing to provide Covid-19 testing services to its key partners.
"I am extremely proud of the hard work and adaptability of the MyHealthChecked team in 2021, which has enabled us to succeed in a highly competitive retail market and deliver to the pharmacy leaders," said chief executive officer Penny McCormick.
"We believe that the strong commercial relationships that have been established in 2021 and include both of the UK's top pharmacy retailers will provide a solid foundation as we look to commercialise a wider range of tests in the first half of 2022."
McCormick said the company had "worked to harness" the opportunity that the pandemic testing market provided, with the earnings generated creating "significant growth" in the business, which would be built on further in 2022.
"While there is still market uncertainty about the future of Covid-19 testing, we are set to reinvest our earnings into the delivery of our growing product pipeline in 2022, and I look forward to providing future updates to investors."
At 1257 GMT, shares in MyHealthChecked were down 5.72% at 1.98p.
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