11 August 2021 – Audited Final results and unaudited Q1 business update

Yourgene Health plc

(“Yourgene” or the “Group” or the “Company”)

Audited Final results and unaudited Q1 business update

Manchester, UK – 11 August 2021: Yourgene (AIM: YGEN), the international molecular diagnostics group, announces its full year financial results for the year ended 31 March 2021 (“FY21”), and provides a business update after its first trading quarter of the current financial year (Q1).

The FY21 results, delivered in-line with prior guidance, reflect resilient revenue growth through the unprecedented challenges brought by the Covid-19 pandemic. Despite these challenges, the business evolved further with product mix changes, significant M&A activity and capital and increased operating investments to support key future growth drivers.  As a result, the new financial year has started more strongly, with significant growth in Q1 against a Covid-impacted comparable period but performing in line with our growth plans which are enabled by these strategic investments.

Financial headlines

  • As previously reported, revenues increased 10% to £18.3m from £16.6m, with Covid-related revenues and strong European NIPT growth offsetting international pandemic headwinds
  • Gross profit up 11% to £11.4m from £10.2m
  • Adjusted EBITDA* decreased to a negative £2.0m (FY20: £1.3m positive adjusted EBITDA) after investing £2.4m of additional expenditure in future growth projects, from which we are already seeing substantial benefits in the new financial year
  • Total comprehensive loss increased to £12.2m reflecting a goodwill impairment charge arising from pandemic-related challenges in Asian markets (2020: loss of £2.3m)
  • Cash used by operations increased to £3.8m from £2.1m, including a £1.6m inventory build primarily for Covid testing products which have bolstered revenues in Q1 of FY22
  • £7.4m cash invested mainly in the acquisition of Coastal Genomics, Inc., in the expansion of Genomic Services laboratory facilities, in NIPT instrumentation for key clients transitioning to IONA NX® and in internally generated intangible assets from research and development activities (FY20: £9.0m invested, mainly on acquisitions)
  • £15.5m generated from financing activities, principally an equity raise in August 2020 to facilitate the acquisition of Coastal Genomics and generate additional working capital (FY20: generated £12.6m for acquisitions)
  • Net cash improved to £6.8m at 31 March 2021 from £2.4m at 31 March 2020

* Adjusted EBITDA is the operating profit/(loss) before interest, tax, depreciation, amortisation, share-based payments and acquisition-related expenses shown separately disclosed on the face of the Income Statement

Operating headlines

  • Acquisition of Coastal Genomics in August 2020 adds Ranger® Technology intellectual property portfolio in DNA fragment size selection along with US-focused strategic client portfolio
    • Integrating well, meeting first and second equity earn-out milestones in March 2021 and April 2021 by delivery of strategic commercial partnership
    • Strong pipeline in place for additional new customers, especially in North America
  • Non-invasive prenatal testing (NIPT) portfolio significantly strengthened, despite pandemic challenges affecting international markets and delaying new market penetration
    • IONA® Nx NIPT Workflow CE-marked, launched and all key European NIPT accounts transitioned
    • IONA® Nx NIPT awarded contract with St George’s NHS Hospital (October 2020)
    • New NIPT partnerships secured in Japan and USA, with launches delayed due to pandemic
    • IONA® Twin Study published
  • Appointment of VP Sales in March 2021 to drive commercial penetration in North American markets for Ranger® and Next Generation Sequencing (NGS) technologies such as NIPT
  • Launch of Yourgene Genomic Services, including new UK-based Covid-19 and contract research service offerings
  • Adapted to the Covid-19 pandemic through the launch of Covid-19 testing services in the UK and the CE-marked Clarigene® SARS CoV-2 PCR assay
    • Accredited for UK government travel-related testing schemes
    • Partnerships with Newcastle Premier Health Limited (“NPH”) and others for airport and community testing
    • c£1m invested into laboratory testing capacity, now capable of c100,000 tests per month and suitable for non-Covid services in future
  • DPYD testing recommended by multiple UK and international health policy-making bodies

Current trading: Q1 business update (unaudited)

  • Q1 revenues over £6m, up 80% vs. Q1 FY20, driven by Covid-related services and product sales as the UK reopens
  • Estimated Q1 adjusted EBITDA profit of c.£0.7m, to be enhanced through a further £1.0m of identified, annualised operating expense savings already being implemented via a business refocus programme
  • Covid-19 testing routes to market strengthened in the travel sector and expanded into consumer-facing partnerships
  • Secured entry into the UK’s National Microbiology Framework in all four framework areas within which we are now pursuing multiple opportunities
  • US market penetration continues with a multi-year licence and supply agreement for NGS-based reproductive health screening
  • Second strategic partnership for Coastal Genomics, again US-focused mainly in the field of non-Covid-19 infectious diseases demonstrating the versatility of the acquired technology
  • International distribution network being reinforced

Joint comment from Adam Reynolds, Chairman, and Lyn Rees, CEO: “The last financial year presented many operational and financial challenges to our business operations as a result of the Covid pandemic.  Despite a challenging year operationally, we have maintained focus on our long-term objectives as well as effectively navigating the pandemic in the short-term, and as a result have established a broader platform with increased growth prospects to deliver shareholder value in the medium term.  Achieving double digit growth was a significant achievement, and our accelerated investment in existing and new technologies has positioned us very well for the anticipated strong post-pandemic growth in the global molecular diagnostics market. Despite the impact on group profitability in FY21, this investment is already reaping rewards as demonstrated by the momentum seen in Q1 which is continuing into Q2. After strengthening our in-field commercial resources last year, we have also identified opportunities to refocus our cost base during the current financial year. As a result we look forward to a resumption of profitable growth at Group level, with continuing impetus in the US market specifically.”

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Yourgene Health plc

Lyn Rees, Chief Executive Officer
Barry Hextall, Chief Financial Officer
Joanne Cross, Director of Marketing

Tel: +44 (0)161 669 8122


Cairn Financial Advisers LLP (NOMAD)
Liam Murray / James Caithie / Ludovico Lazzaretti

 Tel: +44 (0)20 7213 0880

N+1 Singer (Joint Corporate Broker)
Aubrey Powell / Tom Salvesen / George Tzimas

Tel: +44 (0)20 7496 3000

Stifel Nicolaus Europe Limited (Joint Corporate Broker)

Nicholas Moore / Matthew Blawat / Ben Maddison

Tel: +44 (0)20 7710 7600

Walbrook PR Ltd (Media and Investor Relations)

Paul McManus / Lianne Cawthorne 

Tel: +44 (0)20 7933 8780 or yourgene@walbrookpr.com

Mob: 07980 541 893 Mob: 07584 391 303   

About Yourgene Health

Yourgene Health is an international molecular diagnostics group which develops and commercialises genomic services and technologies. The Group works in partnership with global leaders in DNA technology to advance diagnostic science. 

Yourgene primarily develops, manufactures, and commercialises simple and accurate molecular diagnostic solutions, for reproductive health, precision medicine and infectious diseases. The Group’s flagship in vitro diagnostic products include non-invasive prenatal tests (NIPT) for Down’s Syndrome and other genetic disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests and DPYD genotyping.

Yourgene has a range of innovative DNA sample preparation platforms, powered by Ranger® Technology, the Yourgene LightBench® and Yourgene QS250, ideal for cell-free DNA applications in NIPT and oncology including liquid biopsy.

Yourgene Genomic Services is a global laboratory service network equipped to be a full life-cycle partner for clinical, research and pharmaceutical organisations to support partners at the preclinical, clinical, and post-market stages to develop, manufacture, obtain regulatory approval and commercialise new products and services. In addition, Yourgene Genomic Services offers an NIPT and high throughput COVID testing service.

Yourgene Health is headquartered in Manchester, UK with facilities in Taipei, Singapore, the US and Canada, and is listed on the London Stock Exchange’s AIM market under the ticker “YGEN”. Follow us on LinkedIn and Twitter.  Further information is available at www.yourgene-health.com