Monday, May 23, 2022

SourceBio reports “substantial revenue and profit growth”

Full year results are ahead of expectations at SourceBio International, the Nottingham-based provider of integrated laboratory services and products.

A trading update for the year ended 31 December 2021 confirms “considerable growth in both revenues and adjusted EBITDA.”

The company has confirmed that full year results will be “significantly ahead of market expectations.”

It expects to report, subject to audit, revenues of approximately £92.4 million, an increase of 82% on revenues of £50.7 million recorded in 2020.

Meanwhile the company expects to report adjusted EBITDA, subject to audit, approximately 70% higher than the adjusted EBITDA of £14.2 million recorded in 2020.

The group’s long-standing business units of Healthcare Diagnostics, Genomics and Stability Storage (together the “Core Divisions”) are all now back to pre-Covid levels of trading.

The group’s Cellular Pathology testing services saw very solid recovery from Q2 2021, although the pace of growth later in the year was slower than had been anticipated, as COVID-19 continued to impact on the pace of the return of elective surgeries.

COVID-19 PCR testing revenues were healthy in the full year but fluctuated considerably during the year. Demand increased dramatically as travel restrictions lifted in late Q2, then reduced in Q4 as Government policy switched from the higher quality PCR testing to lateral flow testing for day two arrivals. They then bounced back in the latter weeks of the year as the Government mandated a return from lateral flow to PCR testing for day 2 arrivals.

Jay LeCoque, Executive Chairman, said: “I am pleased to report to shareholders substantial revenue and profit growth in 2021, in what has been a record trading year for SourceBio. It is encouraging to see that our base business units have returned to pre-Covid levels of trading and continue to capitalise on significant new growth opportunities. Our Covid-19 testing business performed very well in 2021, particularly given the continued switches in Government policy regarding testing requirements for travel.

“The company remains well capitalised and has benefitted from very strong cash conversion driving cash balances to over £33 million. With a balance sheet free of borrowings, the group is well positioned to fuel further growth in 2022 through our Core Divisions and to contemplate attractive acquisition opportunities. The board is appreciative of the dedication and efforts from all its staff in a very challenging year and is also grateful for the support from its shareholders. We look forward to updating shareholders in more detail in due course.”

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