Abingdon Health has cut its annual losses and returned to adjusted EBITDA profitability in the second half as the rapid diagnostics group looks to build on a year of strong revenue growth.<\/p>\n
The York-based business increased total revenues, including grant-funded income, by 32% to \u00a311.3m in the year to 30 June 2026, up from \u00a38.6m a year earlier.<\/p>\n
Its adjusted EBITDA loss narrowed from \u00a32.6m to \u00a31.5m, while its loss before tax fell from \u00a33.5m to \u00a32m.<\/p>\n
Gross margin improved to 47.1% from 44.3%, and cash balances rose to \u00a32.9m from \u00a31.9m.<\/p>\n
But the company warned that delays to several programmes since June, including issues with specialist reagents and changes to project specifications, mean revenue in the current financial year is expected to be heavily weighted towards the second half.<\/p>\n
Executive chairman Dr Chris Hand said the group still expected to deliver significant growth in FY27 and beyond, with the infrastructure needed to support expansion largely in place.<\/p>\n
Reported revenue increased by 30% to \u00a311m, with contract development the strongest performer. Revenue from this division rose 56% to \u00a35m, helping drive a 62% increase in sales in the second half compared with the first six months.<\/p>\n
The group said the growth in contract development was building a pipeline of work that could progress into manufacturing as products complete scale-up, regulatory approval and commercialisation.<\/p>\n
Revenue from regulatory services and medtech consultancy increased 21% to \u00a34.1m, reflecting a full-year contribution from CS Lifesciences and opportunities to sell multiple services to existing customers.<\/p>\n
Sales of lateral flow self-test products and technology rose to \u00a3600,000 from \u00a3500,000, although the group said these products are increasingly being used to promote its contract research and manufacturing services.<\/p>\n
Abingdon raised \u00a33.2m net through an equity fundraising in October 2025 to support working capital and accelerate the expansion of its US operations in Madison. Its shares were also admitted to trading on the OTCQB Venture Market in New York under the ticker ABDXF.<\/p>\n
The Madison site has since expanded beyond its original development laboratories to include a manufacturing hub, additional equipment and performance evaluation services. The facility was officially opened on 24 September 2026.<\/p>\n
Looking ahead, Hand said the group had good visibility and a solid base of contracted revenue, with customers increasingly awarding larger projects of longer duration.<\/p>\n
However, some previously active projects have been replaced by others as the business moves into FY27, while delays to revenue-generating work in the first quarter will push a significant proportion of expected revenue into the second half.<\/p>\n
The restructuring of CS Lifesciences, as its activities are more fully integrated into the wider group, will also affect full-year revenue as the business shifts towards higher-margin projects. The impact on EBITDA is expected to be less significant.<\/p>\n
Hand said the board expects continued revenue growth to deliver an improved EBITDA position in the year to June 2027 compared with FY26.<\/p>\n
He added that the priority was to deliver existing customer programmes while securing further work from the group’s commercial pipeline.<\/p>\n","protected":false},"excerpt":{"rendered":"
Rapid diagnostics group cuts annual losses by more than a third but warns of delayed projects and a second-half weighting to revenues in the year ahead<\/p>\n","protected":false},"author":271992,"featured_media":2133395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262,120781],"coauthors":[137100],"class_list":["post-2161473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-markets","tag-featured-story","tag-yorkshire"],"yoast_head":"\n