Oxford Nanopore Technologies PLC doubled revenues in the first half but underlying losses increased due to investments and Covid-related revenues are expected to taper off in the second half.
The gene sequencing company, which works with sectors such as biomedical, infectious diseases and food & agriculture and supports research in human genetics, cancer and viral outbreaks, reported £122.3mln of revenue for the first half, up from £59mln.
Revenue from Covid-19 testing was up 709% to £51.8mln.
Sales of the core Life Science Research Tools (LSRT) were up 34% to £70.6mln, reflecting increased customer numbers. If excluding COVID-related sequencing and the one-off Emirati Genome Program, LSRT revenues were up 30%, with gross profit margin increased to 54.8% from 51.1% a year ago due to more automation and recycling of electronic components.
Underlying losses on an EBITDA basis widened to £34.6mln from £19.2mln, while statutory losses were trimmed to £30.2mln from £44.8mln, in part reflecting settlement of a UK government contract.
An increase in the headcount to more than 900 from just over 800 in December reflected investment in innovation, with various new developments launched in the period, while the commercial team was grown and there was also spending on manufacturing processes to meet growing demand, said chief executive Gordon Sanghera.
Cash and equivalents were £602.6mln at the half year, down from £618.2mln in December.
Trading so far this year was said to be in line with expectations and the board still expects full-year 2022 LSRT revenue to be in the range of £145-160mln, though Covid revenue is expected to taper in the second half, while the Emirati revenue is expected to be £15-20mln, which is lower than previously anticipated.
“We are seeing increasing demand around the world for our unique offering and are hugely proud of the new ground that our customers are breaking with the aid of our technology, in areas spanning population genomics, viral surveillance, neurological disorders, cancer and environmental conservation,” said Sanghera.
He said this breadth “underlines the scale of the opportunity we see ahead, as we seek to enable the analysis of anything, by anyone, anywhere”.
The shares rose 1.8% to 277p on Tuesday morning, but are still down 59% in the year to date.