22nd Mar 2022 11:26
(Alliance News) - Circassia Group PLC on Tuesday reported increased revenue and a narrowed loss for 2021, on a higher contribution from its Niox arm.
In 2021, the Oxford-based medical device company reported a narrowed pretax profit of GBP2.1 million from GBP18.4 million in 2021.
Circassia swung to an overall profit of GBP3.6 million from a loss at GBP33.5 million the year before. It attributed this to a tax credit of GBP4.4 million, a profit from discontinued operations of GBP1.3 million and increased revenue.
Revenue grew 17% to GBP27.9 million from GBP23.9 million.
Circassia credited its revenue growth to higher revenue from its Niox business. Niox sells medical devices used to diagnose, track and treat the chronic inflammation of the airways that causes asthma. Circassia has focused exclusively on its Niox since May 2020.
Clinical revenue for Niox increased 8.8% to GBP23.4 million from GBP21.5 million. Research revenue for Niox rose 88% to GBP4.5 million from GBP2.4 million.
In relation to the war in Ukraine, Circassia noted that it has no operations in Russia and does not generate revenue in the country. However, it does derive revenue from Ukraine and stated that in 2021, revenue from the country was less than 1% of group revenue.
Looking ahead, Circassia expects the pandemic to continue to negatively impact its markets.
However, the company expects its much-reduced cost base, high levels of recurring revenue and high gross margins to continue to provide a "considerable degree of resilience going forward."
The company also intends to focus on the ongoing transition to a distributor led business model. It believes this will drive top-line growth and deliver further shareholder value over the medium term.
"The group passed some significant milestones in 2021, achieving positive adjusted earnings before interest, tax, depreciation, amortization and a post-tax profit for the first time, as well as generating positive cash flow from our operating activities. The group is debt-free and has the cash resources to continue implementing its business strategy of accessing a large and underserved population of patients suffering from asthma," Executive Chair Ian Johnson said.
Shares were up 0.6% at 40.56 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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