Oncimmune Holdings plc
(“Oncimmune” or the “Company”)
Revenue for FY 2024 for continuing operations expected to grow
New management team and Board continue to execute focused strategy
Final results for the 12-month period to 31 August 2023
Oncimmune Holdings plc (AIM: ONC.L), a leading autoantibody profiling company to the pharmaceutical and biotechnology industry enabling precision medicine, today provides an update on recent trading and the outlook for the current financial year (“FY 2024”) and announces its audited results for the 12-month period ended 31 August 2023 (“FY 2023”).
Business highlights and outlook
- The new strategy, which was announced on 12 October 2023, continues to be implemented. On 30 November 2023 it was announced that contracts had been signed for four new projects since the beginning of FY 2024, three of which were with existing customers who are major pharmaceutical companies. Since that announcement a further three new contracts have been entered into.
- Revenue in FY 2024 expected to be approximately £3m, compared with FY 2023 revenue from continuing operations of £1.2m, a growth rate of 150%. Coming up to the end of H1 FY 2024, work to achieve approximately 75% of the forecast FY 2024 revenue has been secured, with the majority of samples received or expected imminently allowing lab work to begin and revenue to be recognised in due course.
- Buildout of commercial team is now nearly complete, with three members in the US and one in Europe. One additional hire expected in Europe in FY 2024. As the new commercial team begins to gain traction the full effect on revenue growth is expected towards the end of FY 2024 and beyond.
- The new senior management team, which has been in place for nearly six months, has completed a full review of the Group’s operational capability and cost base and expects FY 2024 overheads, including costs associated with senior management, to be lower than those in FY 2023.
- New equity based rewards for the senior management team are being considered, to closely align the interests of senior management with those of the Company’s shareholders.
Operational and commercial highlights for FY 2023
- Refocus of business on ImmunoINSIGHTS following sale of Oncimmune Limited (including the EarlyCDT Lung blood test) to Freenome Holdings Inc for a total of £13m.
- Reprofiled debt facility with IPF Management SA, including repaying €7.2m (being €5.6m of principal and €1.6m of interest) and agreeing new payment terms.
- New leadership team, with Martin Gouldstone joining as Chief Executive Officer in August 2023 and a new Finance Director, Martin Hudson, being announced in July 2023 and joining the Company in September 2023.
- Changes to the Board beginning in FY 2023 and completing in FY 2024, with John Goold joining the Board in January 2023, Andrew Unitt, Tim Bunting and Dr Annalisa Jenkins retiring from the Board in September, October and November respectively and Dr Sally Waterman joining the Board in October 2023.
Financial highlights for FY 2023
- Revenue for the period was £2.1m (2022: £3.8m for 15-month period), revenue for continuing operations was £1.2m.
- Gross profit for the period was £1.5m (2022: £1.8m for 15-month period), gross profit from continuing operations was £0.8m.
- Administrative expenses were £6.1m (2022: £8.7m for 15-month period), administrative expenses for continuing operations were £5.0m.
- Profit after tax was £4.1m (2022: loss of £11.4m for 15-month period), largely arising from a gain on disposal of £12.2m. Loss from continuing operations was £6.2m.
- Gross cash balance at the period end of £3.2m (2022: £1.4m) and net debt at the period end of £2.1m (2022: £9.2m), after disposal of Oncimmune Limited and Oncimmune Europe GmbH (the “Disposal”) and part repayment of the debt facility with IPF Management SA. £1.3m of the consideration relating to the Disposal remains in escrow and is expected to be released to Oncimmune in May 2024.
The Company’s Annual Report and Financial Statements 2023 (the “Annual Report”) is available on the Company’s website at www.oncimmune.com.
Martin Gouldstone, Oncimmune’s Chief Executive Officer, commented: “Whilst FY 2023 has seen significant changes to the operations and management of Oncimmune, I remain encouraged and optimistic about the business outlook for FY 2024 and beyond. During my first six months as CEO I, together with the rest of the senior management team, have carried out a root and branch review of the operations and financials of the business and have formulated a focused strategy to see the Group reach revenues in its ImmunoINSIGHTS business not previously achieved. I have been pleased to see some of the strategy beginning to bear fruit and look forward to being able to report on more positive progress in the coming months. I would like to thank all of Oncimmune’s staff, the Board and the company’s wider stakeholder group for welcoming me to the company and for their support and positive messages since I joined.”