21st Dec 2022 17:45
(Alliance News) - Yourgene Health PLC shares dropped on Wednesday, after it reported its interim loss widened amid anticipation that revenue in financial year 2023 will fall sharply.
Pretax loss in the six months to September 30 increased to GBP6.2 million from GBP306,000 a year prior. Revenue fell to GBP9.6 million from GBP17.5 million.
The company expects financial year 2023 revenue of around GBP18 million to GBP20 million, at least 47% lower than GBP37.6 million in financial year 2022.
Further, in financial 2023 it expects to turn to an adjusted loss before interest, tax, depreciation and amortisation of GBP3.5 million to GBP4.5 million before exceptional items versus an adjusted Ebitda of GBP3.4 million in financial 2022.
Shares in the Manchester-based molecular diagnostics company closed down 14% at 1.60 pence each in London on Wednesday afternoon.
Looking ahead, Yourgene said: "Within Genomic Services we expect to see recovery in non-invasive prenatal test and research services as we also broaden our portfolio to provide whole exome and whole genome sequencing services. We continue to repurpose our testing capacity towards non-Covid testing and our extension of our partnership with Ambry Genetics provides us with an oncology testing range that broadens the Genomic Service offering considerably."
Also on Wednesday, the company said it plans to raise up to GBP6.0 million through the issue of 1.67 billion new shares priced at 0.30 pence each.
The issue price represents a 84% discount to Yourgene's closing share price of 1.85p on Tuesday, being the last business day before the announcement.
The capital raising includes a placing of at least 1.28 billion new shares at the issue price, raising a minimum of GBP3.9 million. In addition, some Yourgene directors plan to subscribe to 383.3 million new shares at the issue price.
Yourgene also intends to carry out a separate offer of up to 333.3 million new shares to raise a further GBP1.0 million. The company noted that it plans to use the proceeds to provide near-term working capital and facilitate further restructuring of the company's cost base, removing GBP2.0 million of annual operating expenditure.
Yourgene added that it will use any additional proceeds to fund regulatory approvals and existing product enhancements.
Singer Capital Markets Securities Ltd is acting as sole bookrunner and sole broker in connection with the placing. Cairn Financial Advisers LLP is acting as nominated adviser to Yourgene in connection with the admissions.
By Tom Budszus, Alliance News reporter
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