Corporate News

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

Improved gross margin and an increase in adjusted EBITDA. Company continues to build on foundations and improve profitability

CNS (AIM: CNSL), the specialist medical diagnostics company focused on promoting a personalised and functional approach to health and nutrition, announces its unaudited interim results for the six months ended 30 September 2024 and remains on track to meet EBITDA expectations for the year.

H1 Financial Highlights:

• Adjusted EBITDA¹ increased to £0.2m (H1 2024: £0.0m)
• Revenue of £4.1m (H1 2024: £4.9m)
• Gross margin increased to 65.4% (H1 2024: 62.7%), largely due to production efficiencies & product mix
• Loss before tax reduced to £0.2m (H1 2024: £0.7m)
• Cash and cash equivalents ahead of prior year at £4.5m (H1 2024: £4.4m)

Operational Highlights:

• in operations with FoodPrint® yields continuing to improve
• CNSLab productivity has remained high with August and September both hitting a record high number of tests
• Automation and restructuring in operations have helped drive sustainable margin improvement
• Appointment of two full-time salespersons in the USA and Southern Europe to further develop the markets

Current trading and Outlook:

• Company remains on track to meet adjusted EBITDA¹ expectation
• Sales team have been expanded with new Global Sales Director and UK BDM to help drive long-term growth
• Well-funded to deliver on our strategic objectives to grow the Company
• Developing new partnerships with USA Laboratories that are expected to commercialise FoodPrint® in H2
• The Board remains confident that the Company has a compelling case regarding the dispute with DHSC but there have been no material developments

¹Adjusted for exceptional items, amortisation of intangible assets and share based payment charges.

Commenting on the results, James Cooper, Interim Chief Executive officer, said:

“The results of H1 have shown that the operational improvements are now hitting the bottom line, with an improved margin and an uplift in adjusted EBITDA. This is particularly encouraging as we did not have the benefit of a sizeable order backlog that boosted last year’s H1 revenue. This puts us in a strong position as we continue to invest in growing the sales team whilst being confident in our ability to deliver on time and in full to all our customers.”

Investor presentation

Carolyn Rand, Chair, and James Cooper, Interim CEO, will provide a live presentation relating to the Interim Results via the Investor Meet Company platform today at 4:00pm GMT. The presentation is open to all existing and potential shareholders.

Investors can sign up to Investor Meet Company for free and add to meet Cambridge Nutritional Sciences plc via:

https://www.investormeetcompany.com/omega-diagnostics-group-plc/register-investor

The investor presentation will later be made available on the Company website:

https://www.cnsplc.com/financials/presentations

The information communicated in this announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014

Contacts: 

About Cambridge Nutritional Sciences plc

Cambridge Nutritional Sciences plc (AIM: CNSL) is a specialist medical diagnostics company focused on industry-leading Health and Nutrition products.