Highlights:
- Group revenue increased 19% to £12.1 million (HY16: £10.2 million)
- Significant improvement in Group gross margin to 64% (HY16: 48%)
- Product revenues increased by 10% to £5.3 million (HY16: £4.8 million) with gross margin expansion to 73% (HY16: 65%) and a strong H2 pipeline in place
- Services delivered revenues of £6.8 million, an increase of 30% (HY16: £5.2 million) with gross margin increase to 57% (HY16: 33%) as the impact of operational efficiencies are realised
- Improvement in Products and Services Loss Before Interest, Tax, Depreciation and Amortisation to £3.6 million (HY16: £(3.9) million)
- Cash balance of £4.8 million as of end of H1 (HY16: £13.0 million) supplemented post-period by over-subscribed £80 million share placing on 23 August 2017
- The Group remains eligible to receive future R&D milestones of up to £208 million plus future product royalties (HY16: £208 million) through its Research Biotech business
- Post period, Horizon completed the transformational acquisition of GE Healthcare Dharmacon, Inc. for consideration of $85 million (comprising $50 million cash consideration and $35 million equity consideration)
Financial Summary and Guidance:
- Based on historical H1:H2 revenue weighting (40%:60%), combined with a strong H2 order book, the Group is on track to achieve FY17 revenue of £30 million - £33 million on an organic basis
- Inclusive of the impact of the acquisition of GE Healthcare Dharmacon, Inc. (“Dharmacon”), Horizon expects to report FY17 revenue in the range of £37 million - £41 million; Dharmacon will be consolidated with effect from 1 September 2017
- Full year EBITDA for the enlarged Group is expected to be approximately break-even prior to exceptional items and discontinued operations
- Realisation of benefits from investments and actions taken in prior years to optimise organisational design and operating efficiency and to further build our commercial capability
- Consolidation of core capabilities expected to result in a c.5% annualised decrease in staffing costs across the Group (exclusive of Dharmacon):
- The relocation of cell line manufacturing capabilities in Vienna, Austria to Horizon’s UK-based in vitro Centre of Excellence with the intention to close the Vienna site by the end of 2017
- Alignment towards high-value activities with associated headcount reductions already announced
Commenting on the interim results, Dr Darrin M. Disley, CEO of Horizon Discovery Group, commented: “We are very pleased with our progress in the first half of 2017, delivering consistent strong growth as the business continues to scale, and significant margin improvements as steps taken in 2016 to improve operational efficiencies bear fruit.
“The acquisition of Dharmacon will be transformational for Horizon across our markets, creating a business which is the global leader in the application of both gene modulation and gene editing technologies. We are delighted to welcome the Dharmacon team, and we expect the strong commercial synergies between both organisations to accelerate revenue growth and considerably support the drive to sustainable profitability of the enlarged business.
“With the acquisition and over-subscribed £80 million fundraising complete, and a strong cash position in place, Horizon now has a significant opportunity to embark on an ambitious programme of targeted investment, aggregating the best technologies, IP, and capabilities from around the world to rapidly build a global powerhouse that will help drive the next century of healthcare innovation and better outcomes for patients.”
Read more at www.horizondiscovery.com
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