CelLBxHealth (AGL) H1 2024 earnings summary

Executive summary

• Secured three large pharma contracts with Eisai and AstraZeneca, and a fourth with Recursion Pharmaceuticals, all progressing well and expected to drive significant revenue growth.

• Strategic shift to prioritize large pharma contracts due to funding constraints in smaller biopharma and regulatory headwinds in product sales.

• Raised £9.3 million (gross) in June 2024 to support pharma contract development, with a cash position of £17.9 million at period end.

• Achieved 100th peer-reviewed publication and secured exclusive global license (ex-China) for NuProbe's pan-cancer NGS panel covering 61 genes and 6,500 mutations.

• Cost-saving measures implemented, including closure of US clinical laboratory and reduction in non-critical R&D.

Financial highlights

• H1 2024 revenue at £1.0 million, down from £1.2 million in H1 2023, at the low end of guidance.

• Gross margin at 59% (H1 2023: 62%), with gross profit of £0.6 million.

• Loss for H1 2024 reduced by 21% to £7.7 million (H1 2023: £9.8 million); EPS loss of 2.89p (H1 2023: 3.77p).

• Operating expenditure reduced by 13% year-over-year to £7.5 million.

• Cash and cash equivalents at 30 June 2024 were £17.9 million, with an R&D tax credit of £2.1 million due.

Outlook and guidance

• 2024 revenue guidance revised to £3.0–£3.7 million due to delays in product sales pipeline.

• H2 2024 revenues expected to at least double H1, with a sold order book of £1.9 million.

• Cashflow positive trading anticipated in H2 2026, supported by large pharma contracts and lower cost base.

• Strategic focus on pharma services and launch of dual CTC/ctDNA molecular assay within six months expected to drive growth.