Niox expects to report earnings growth as research revenue doubles
Niox Group PLC on Tuesday said it expects to report increased earnings for the six months to the end of June, with growth in research revenue ahead of its expectations.
The Oxford, England-based developer of medical devices for asthma diagnosis and management said it expects to report revenue growth of 20% to £25.2 million for the six months to the end of June from £21.0 million a year ago.
It said clinical revenue grew 8.1% to £20.0 million from £18.5 million while research revenue doubled to £5.2 million from £2.5 million.
‘The growth in research revenues exceeds management’s expectations at this time of year. However, it remains too early to determine whether this strong performance will continue throughout 2025, as demand is ultimately determined by pharmaceutical companies’ investment in clinical trials,’ Niox said.
It expects to report adjusted earnings before interest, tax, depreciation and amortisation up 30% to £9.2 million from £7.1 million.
The gross margin was down 2% from a year ago to 70%, due to a higher mix of device-heavy research sales, Niox added.
Overhead costs were broadly in line with the prior year, before the one-off exceptional costs from the withdrawn Keensight bid of around £300,000.
Niox said it has not seen any impact from US tariffs and it continues to expect to avoid a material impact on the business. It intends to pass on any related increases to its cost base through higher pricing if possible.
‘I am pleased to report that the year has started well, and I’m particularly proud of how the team has stayed focused and maintained momentum, delivering strong growth in revenues and profits despite external distractions associated with the withdrawn Keensight bid,’ said Chief Executive Officer Jonathan Emms.
‘We are confident that our strategic initiatives, including accelerating the penetration of FeNO testing in the US market and the upcoming launch of the Niox Pro, will drive continued progress.’
Niox will release its interim results for the first six months of the year on September 30.
Shares in Niox were up 0.6% at 68.82 pence in London on Tuesday morning.
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