4th Feb 2020 12:55
(Alliance News) - Horizon Discovery Group PLC on Tuesday reported mixed performance across its trading divisions but said it expects to accelerate growth in the year ahead.
The stock was trading 9.6% higher in London around midday at 175.33 pence a share.
The gene editing and gene modulation technologies company said it expects to report 2019 revenue - which excludes In-Vivo business divested in December - of GBP58.3 million, down by 7.2% from GBP54.1 million reported a year ago. On a constant currency basis, revenue grew by 8%, Horizon Discovery noted.
Revenue growth during the year has been driven by a "strong" performance in the Research Reagents and Screening units, the company said.
The BioProduction division continued to perform well and generated a "strong" second half performance, but, as expected, Horizon Discovery said the unit ended 2019 broadly flat, reflecting "exceptionally strong" prior-year comparator performance.
The Diagnostics unit, which had a "challenging" first half, reported a "stronger" second half as Horizon Discovery said it took "prompt action to rectify the situation".
Looking ahead, the company said it continues to follow its Investing For Growth strategy with continued investments in IT, screening and research & development to support its new Base Editing platform.
"We have reported a solid full year 2019 performance based on the unaudited results against the backdrop of a busy second half that has seen a number of notable developments that will help to accelerate our transformation into a high-growth, pure-play tools and services company," said Chief Executive Terry Pizzie.
Pizzie added: "We are committed to continued focused investment in commercially-led, scientific innovation to stay at the forefront of emerging technologies."
Horizon Discovery said it will report its 2019 results on March 30.
In addition, the company said it has submitted a draft registration statement with the Securities & Exchange Commission relating to the proposed initial US public offering of American depositary shares.
The number of American depositary shares to be offered and the price range for the proposed offering have not yet been determined, Horizon Discovery noted.
The company said it expects to use the proceeds of the offering for general corporate purposes.
By Evelina Grecenko; [email protected]
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