26th Oct 2020 12:00
(Alliance News) - Molecular diagnostics group Yourgene Health PLC on Monday said European sales offset a reduction in international revenue in the first half of its financial year, with full year outlook in line with expectations.
Total revenue for the half year ended September 30 increased 5% to GBP8.2 million from GBP7.8 million a year before.
The company said strong European revenues offset the headwinds from Covid-19 on international sales.
Yourgene Health said: "International markets were particularly affected by the enforced Covid-19 lockdowns, which inhibited cross-border shipments and in-country non-Covid-19 testing, especially in Japan and India amongst others.
"Delays in launching new customer sites in key new international markets such as the USA and Japan have recently been resolved and strong momentum has been established in the early part of the second half of the financial year."
Revenue from its UK Covid-19 testing services and international Clarigene SARS-CoV-2 diagnostic product started to build in the latter part of the first half and are showing strong growth in the early part of the second half of the financial year, Yourgene Health said.
UK revenue increased 40% to GBP1.5 million from GBP1.1 million a year prior. UK growth was primarily driven by Covid-19 related products and services
European revenue increased 80% to GBP2.9 million, while International revenue fell 25% to GBP3.8 million.
Yourgene Health said that core laboratory customers are now returning to more normal patterns of testing which, if sustained, the company expects to restore the previous growth trends in non-invasive prenatal testing, reproductive health, oncology and research markets.
Yourgene Health said: "In addition, Yourgene's UK Covid-19 testing service is expanding rapidly and from the beginning of October is now operating at its full capacity of 10,000 tests per month. Capacity is being further expanded to 20,000 tests per month which is due to come on stream in the third quarter. This will increase COVID-19 testing revenue potential to approximately GBP1 million per month and there is potential for further expansion in line with anticipated demand."
The company's full year outlook remains in line with its expectations.
Yourgene Health shares were down 7.2% at 18.10 pence each in London on Monday midday.
By Greg Roxburgh; [email protected]
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