NIOX Group (NIOX) H2 2024 earnings summary

Executive summary

• Revenue grew 14% year-over-year to £41.8m, with clinical revenue up 11% to £36.1m and research revenue up 36% to £5.7m, driven by higher FeNO testing volumes, especially in APAC and Europe.

• Adjusted EBITDA increased 21% to £13.8m, with margin rising to 33%. Net cash at year-end was £10.9m after significant shareholder returns.

• All geographic regions saw revenue growth, with APAC leading, and the installed base of devices expanded, notably in Japan and the UK.

• The company remains the market leader in FeNO testing, with over 58 million tests sold to date.

Financial highlights

• Revenue: £41.8m (2023: £36.8m), up 14% (16% at constant currency).

• Clinical revenue: £36.1m (2023: £32.6m), up 11% (14% at constant currency).

• Adjusted EBITDA: £13.8m (2023: £11.4m), up 21%.

• Gross margin stable at 72%.

• Operating profit: £7.7m (2023: £4.6m).

• Profit for the year: £3.7m (2023: £10.7m), with the decrease mainly due to deferred tax charges.

• Net cash: £10.9m (2023: £19.9m), after £25.2m returned to shareholders via dividends and a tender offer.

• Basic EPS: 0.88p (2023: 2.55p); adjusted basic EPS from continuing operations: 2.27p (2023: 3.87p).

Outlook and guidance

• The 2025 financial year started well, with continued focus on organic growth in the underserved FeNO testing market.

• Launch of the next-generation NIOX PRO® device is on track for Q4 2025.

• Policy to return at least 80% of free cash flow to shareholders through dividends and additional returns in the medium term.