Biotech group Yourgene reports first EBITDA profit

Yourgene Health, the international molecular diagnostics group, increased half year revenues and reduced its pre-tax losses in the six months to September 30.

The group, which opened its newly-integrated facilities and corporate headquarters in central Manchester last week, reported turnover of £7.767m during the reporting period, compared with £3.94m last year, a 97% improvement.

Pre-tax losses of £1.342m compared with a pre-tax loss of £3.456m a year ago. At adjusted EBITDA level, the group made a £300,000 profit, compared with a £2.5m loss last year.

The group said the results reflect strong organic growth as well as a first contribution from Elucigene Diagnostics, the trading name of Delta Diagnostics (UK), acquired in April 2019, with the group’s first profits at an adjusted EBITDA level demonstrating significant progress towards profitability.

Elucigene won the Small Business category of this year’s BusinessDesk.com North West Business Masters Awards, held at Gorton Monastery in March.

Yourgene said it remains on track to hit ambitious growth targets for the full year in line with consensus expectations.

During the six months to September the business achieved an oversubscribed £11.8m gross fundraise, of which £6.3m was used for acquisition cash consideration.

Cash used by operations halved to £1.6m, while cash and cash equivalents at September 30, 2019 of £4.1m, compared with £200,000 a year ago. Net cash (cash less borrowings) significantly improved to £3.6m, against net debt of £12.8m in the first half of 2018/19.

Yourgene develops and commercialises simple and accurate molecular diagnostic solutions, primarily for reproductive health.

The group’s products include non-invasive prenatal tests (NIPT) for Down’s Syndrome and other genetic disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests, male infertility tests and genetic disease tests.

Yourgene’s commercial footprint is already established in the UK, Europe, the Middle East, Africa and Asia.

It has achieved its first US revenues and the opening of Yourgene Health Inc in the US.

Chief executive Lyn Rees said: “I am delighted to announce our first EBITDA profit as a demonstration of the transformation that is under way at Yourgene and resultant organic growth, supported by the contribution from Elucigene and the smooth integration process that is almost complete.

“The reorientation of the business to focus on our key four strategic growth drivers is starting to bear fruit, and I remain convinced we have a very significant opportunity ahead of us.

“We are confident in our outlook for the year end and very excited about the prospects for further growth over the following years.”