Niox flags strong year, announces board changes
By Josh White
Date: Thursday 16 Jan 2025
(Sharecast News) - Asthma diagnosis and monitoring device specialist Niox Group reported a solid end to its financial year on Thursday, alongside news of significant board changes.
The AIM-traded company reported unaudited revenue growth of 14% to £41.8m, or 16% at constant currency, up from £36.8m in 2023.
Clinical revenue rose 11% to £36.1m, with recurring test kit sales representing 93% of clinical sales.
Research revenue showed a robust 33% increase, reaching £5.7m, driven by pharmaceutical-sponsored studies in asthma and COPD.
Gross margins remained steady at 72%.
Adjusted EBITDA improved to £13.8m, slightly exceeding market expectations, reflecting an EBITDA margin of 33%, compared to 31% in 2023.
The firm said it ended the year with £10.9m in cash, down from £19.9m, following a £21m shareholder tender offer and a final dividend payment of £4.2m.
Operating cash flow from continuing activities amounted to £14.5m.
"I am pleased to report continued strong growth in revenues and profits which were driven by our core clinical business," said executive chairman Ian Johnson.
"Our manufacturing partner continues to work on the development of the next generation Niox Pro device which is expected to be launched towards the end of 2025."
Johnson said that during 2025, management's focus would continue to be on growing revenues in the US, expanding into new healthcare professional channels and developing a product for home-use.
"The board believes that the company's robust business model will continue to deliver profitable growth and drive further shareholder value."
In a parallel announcement, Niox detailed several leadership transitions.
Ian Johnson, currently executive chairman, would become non-executive chairman following the 2025 annual general meeting on 14 May.
Jonathan Emms, formerly chief operating officer, had meanwhile been appointed chief executive officer effective immediately.
Chief financial officer Michael Roller would retire after the AGM, with Sarah Duncan, the current group financial controller and company secretary, succeeding him.
Duncan, a Chartered Accountant with extensive experience at Niox since 2018, was promoted to her current role last April.
"The current executive team have worked together since the beginning of 2020 and have led the successful turnaround of the business," Ian Johnson commented.
"Jonathan's and Sarah's promotions from within the business are well deserved and provide stability and continuity.
"I congratulate both and wish them every success."
Niox plans to release its full-year results on 1 April 2025.
At 1340 GMT, shares in Niox Group were up 8.04% at 63.1p.
Reporting by Josh White for Sharecast.com.
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