Abingdon Health plc

("Abingdon Health" or "the Company")

Trading update

York, U.K. 06 July 2023: Abingdon Health plc (AIM: ABDX), a leading international lateral flow contract development and manufacturing organisation (CDMO), provides a trading update for the year ended 30 June 2023 ("FY23").

Highlights

·    Strong commercial progress across the Company. FY23 revenues expected to be circa £4.0m, 42% higher than FY22 (£2.8m).

·    Excluding COVID-19 revenues, FY23 revenue expected to be 125% higher than FY22, underlining the strong transition to a sustainable CDMO business model.

·    Revenue for H2, at £2.9m, expected to be more than 2.5x that of H1 (£1.1m), with the increase coming from several new projects commencing from late H1 2023.

·    Strong revenue traction from a diverse range of customers across all aspects of our fully integrated CDMO solution, including contract development, technical transfer, manufacturing, regulatory, quality assurance and commercial support.

·    Good progress in growing the Abingdon Simply Test™ range, including the launch in June 2023 of Salistick™, the first ever saliva pregnancy test.

·    Cash burn has reduced significantly in H2 2023 compared with H1 2023 due to the combined impact of revenue growth and the operational restructuring undertaken in H1 that reduced overhead costs.

·    At 30 June 2023, the Company had circa £3.2m cash (31 December 2022 £ 4.4m), in-line with the Board's expectations.  

Contract services

The Company has seen strong revenue growth year-on-year, particularly in H2 2023 as a number of new projects commenced. All commercial opportunities currently are in non-COVID-19 areas and the business has successfully transitioned into what the Directors believe to be a more sustainable long-term business model.  Abingdon's CDMO proposition is resonating well with customers across a range of sectors, including self-test and point-of-care clinical testing, animal health, plant health and environmental testing. Abingdon's automated Yorkshire-based manufacturing facilities are ideally placed to provide scale as the Company moves products through development, technical transfer and into routine production. Management anticipates further growth in FY24 and will continue to look at opportunities to extend its contract services to support its customers in bringing products through development, regulatory approval, manufacturing, and ultimately commercial success.

Abingdon Simply Test™

The Abingdon Simply Test™ range of self-test products was launched online in July 2022. The product range now consists of 17 self-tests with plans to expand to over 20 tests in FY24. Abingdon continues to build on its route to market in the UK, Ireland and continental Europe. The Company also launched Salistick™, which was co-branded Abingdon Simply Test™, in the UK and Ireland in June 2023, via Abingdon Simply Test™, Amazon and with Superdrug across over 400 stores in the UK and online at Superdrug.com. This is the first example of Abingdon's integrated approach, with the Company's CDMO team supporting Salignostics in the scale-up and manufacturing of Salistick™, and then using its established distribution channels for self-tests. Management anticipates further opportunities to bring CDMO customer products through the Company's distribution channels in FY24 and beyond, providing contract service customers with another 'added-value' service.

Outlook

The Board believes the Company will deliver further strong revenue growth in FY24. The Company's opportunity pipeline is robust and Abingdon's lateral flow CDMO proposition will continue to yield further contract service opportunities over the remainder of 2023 and beyond. The Board remains confident that the Company has the financial resources in place today to deliver its strategic plan.

Chris Yates, CEO of Abingdon Health plc, commented: "We are pleased to report solid revenue performance in FY23, where we expect that excluding COVID-19, our FY23 revenues have grown by 125% relative to FY22, underlining the successful transition of our business to a CDMO model focused on the lateral flow market. We believe that with our lateral flow focus, CDMO service proposition and distribution platform, we are well placed to deliver further revenue growth in FY24 and beyond. Our focus remains on organic revenue growth, the continued reduction in cash burn towards a breakeven position and profitability, and we believe we have the financial resources in place today to achieve this."

Enquiries

About Abingdon Health plc

Abingdon Health is a leading lateral flow contract development and manufacturing organisation ("CDMO") offering its services to an international customer base across industry sectors that include clinical, animal health, plant health, and environmental testing. Abingdon Health has the internal capabilities to take projects from initial concept through to routine and large-scale manufacturing; from "idea to commercial success."

The Company's CDMO division offers product development, regulatory support, technology transfer and manufacturing services for customers looking to develop new assays or transfer existing laboratory-based assays to a lateral flow format. Abingdon Health aims to support the increase in need for rapid results across many industries and locations and produces lateral flow tests in areas such as infectious disease, clinical testing including companion diagnostics, animal health and environmental testing. Faster access to results allows for rapid decision making, targeted intervention and can support better outcomes. 

Abingdon Health's Abingdon Simply Test™ range of self-tests is an ecommerce platform that offers a range of self-tests to empowers consumers to manage their own health and wellbeing. The Abingdon Simply Test™ ecommerce site offers consumers a range of information to support them in making informed decisions on the tests available. In addition, the site provides Abingdon's contract services customers with a potential route to market for self-tests. The Abingdon Simply Test range is also sold through international distributors and through other channels in the UK and Ireland such as pharmacy chains.

Founded in 2008, Abingdon Health is headquartered in York, England.

For more information visit: www.abingdonhealth.com

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.