Oxford Biomedica (OXB) H1 2024 earnings summary

Executive summary

• Achieved strong commercial momentum and 18% revenue growth to £50.8m in H1 2024, with organic growth of 38% and significant progress integrating global operations under the One OXP/One OXB strategy.

• Client base expanded 54% year-over-year to 37 clients and 48 programmes, with a notable increase in late-stage and commercial pipeline momentum.

• Management transition with a new CFO, Lucie Crabtree, and strengthened leadership to support the CDMO strategy.

• Prudent cost control and selective investment in talent underpin operational efficiency.

Financial highlights

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

• Operating EBITDA loss reduced to £20.3m from £33.7m in H1 2023; operating loss narrowed to £32.2m from £50.7m.

• Net loss for H1 2024 was £36.4m, improved from £52.7m in H1 2023; EPS loss per share improved to 30.88p from 49.74p.

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

• Revenue backlog at August 31, 2024, stood at approximately £120m; contracted client orders at £115m.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at £126–134m, with 80% of forecast covered by binding orders and forecasts.

• Three-year revenue CAGR expected to exceed 35% (2023–2026), with 2023 revenue baseline at ~£90m.

• Low double-digit operating EBITDA loss expected for 2024; EBITDA profitability targeted for 2025 and >20% EBITDA margin in 2026.

• High visibility on 2024 and 2025 revenues due to strong order book and suite reservations; GMP suite utilization planned at 80%+ for 2025.

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