13th Jul 2021 11:16
(Alliance News) - Asthma care company Circassia Group PLC provided an update for its first half on Tuesday, including the first positive earnings for its Niox business and higher revenues across the company.
Shares in Circassia were trading up 12% at 33.58 pence each in London on Tuesday morning.
In the six months to June 30, Niox swung to earnings before interest, tax, depreciation and amortisation result of GBP500,000 before corporate overheads, compared to a GBP4.8 million Ebitda loss in the same period a year prior. It was the first time that Niox has posted a positive Ebitda result, Circassia said.
The Oxford-based company said Niox booked GBP14.5 million in revenue in the first half, up 27% from GBP11.4 million in the first half of 2020 and 16% higher than the GBP12.5 million made in the second half.
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 offering since arranging to return two inhaled respiratory medicines, Tudorza and Duaklir, to AstraZeneca PLC in May 2020. The return of these medicines was completed on March 31.
Executive Chair Ian Johnson said: "We are pleased to report that the Niox business has turned a corner and, with the building blocks now in place, is profitable at the Ebitda level for the first time in the history of the company. Management continues to implement the new business model to generate top line growth and to drive further benefit from the significantly reduced cost base in the second half."
Meanwhile, income from clinical settings and research also has improved since 2020.
Research revenue from customers running clinical studies totalled GBP2.4 million in the first half, more than doubling year-on-year from GBP900,000.
Income from Research nudged above the pre-pandemic level, making 9% more than the GBP2.2 million reported in the first half of 2019.
Clinical revenue rose to GBP12.1 million in the first half, up 16% from GBP10.5 million in the same period a year prior.
However, despite the increase of patient appointments, Clinical revenues are yet to return to pre-pandemic levels and remain at 84% of underlying sales in the first half of 2019.
Circassia added that tight cost controls reduced overheads by 34% to GBP9.2 million in the first half of 2021, from GBP14.0 million a year prior. After net cash outflow of GBP1.1 million in the first half, the company was left with net cash of GBP11.3 million on June 30.
With revenue rising across the company's various income streams, Johnson said: "Notwithstanding revenue visibility continuing to be limited, the company's full year Ebitda performance is likely to be ahead of current market expectations."
Circassia said it plans release interim results for the first half on September 16.
By Scarlett Butler; [email protected]
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