Oxford Biomedica (OXB) H1 2024 earnings summary

Executive summary

• Achieved 18% revenue growth to £50.8m in H1 2024, with organic growth of 38% year-over-year, driven by a maturing pipeline and increased demand for CDMO services.

• Expanded client base by over 54% year-over-year, with a balanced pipeline across all major viral vector types and late-stage programs.

• Successfully integrated global operations under the One OXP/One OXB strategy, enhancing operational efficiency and flexibility for clients.

• Leadership strengthened with new CFO Lucie Crabtree and board appointments to support the next growth phase.

• Prudent cost control and selective investment in talent underpin operational efficiency and support increased late-stage client activity.

Financial highlights

• H1 2024 revenues increased 18% to £50.8m (H1 2023: £43.1m); organic revenue growth was 38% excluding acquisitions and lost contracts.

• Revenue backlog as of August 31, 2024, stood at approximately £120m, with contracted client orders at £115m, up from £94m at year-end 2023.

• Cash balance at June 30, 2024, was £81.4m; net cash was £41.7m after accounting for £39.7m in loans.

• Operating EBITDA loss reduced to £20.3m (H1 2023: £33.7m); operating loss narrowed to £32.2m (H1 2023: £50.7m); net loss for H1 2024 was £36.4m, improved from £52.7m in H1 2023.

• Gross margin decreased to 35% (H1 2023: 51%) due to client/product mix and timing of product lifecycles.

Outlook and guidance

• Full-year 2024 revenue expected between £126m and £134m, with 80% of forecast covered by binding orders and forecasts.

• Anticipates low double-digit operating EBITDA loss in 2024, with profitability at the EBITDA level expected in 2025.

• Targeting operating EBITDA margins above 20% in 2026, with three-year revenue CAGR projected above 35% for 2023–2026.

• Strong revenue visibility for 2025, with GMP suite utilization in excess of 80% and high client commitments.

• Capital expenditure for 2024 to remain limited to maintenance and key projects.