Revenue Jumps to GBP11. …

This article first appeared on GuruFocus.

• Revenue: H1 revenue up significantly to GBP11.6 million; underlying business grew ~9% excluding Southern Cross; third consecutive half of growth (from GBP9.6 million in H2 2024).

• Clinical Revenue: ~three-fourths of total revenue at GBP8.5 million; includes ~GBP1.8 million from Southern Cross.

• RUO Revenue: High-margin RUO segment declined year-on-year.

• Instrumentation Revenue: Up over 30% to GBP1.3 million, driven by LightBench Discover demand.

• Gross Profit: Broadly flat at ~GBP6.4 million.

• Gross Margin: Down ~10 percentage points to 56%; longer term expected to exceed 60%.

• EBITDA: Loss of GBP3.9 million; adjusted EBITDA loss ~GBP3.6 million (excluding ~GBP300,000 Southern Cross stock uplift), a ~13% year-on-year improvement.

• Operating Expenses: Decreased to ~GBP10.3 million (including ~GBP0.5 million Southern Cross costs); underlying OpEx down ~GBP800,000 or 8% year-on-year.

• Operating Loss: Reduced by ~GBP2 million year-on-year.

• Cash Position: GBP8.9 million in bank at end of June; ~GBP7.5 million at end of August; debt free.

• Cash Flow: ~GBP10 million consumed in H1; Southern Cross acquisition consumed just over GBP5 million; core operations consumed just under GBP4 million.

• Equity Raise: Net GBP0.5 million raised.

• Regional Growth: Americas up over 30%; Asia Pac up over 20%; Europe up a couple of percentage points.

• Cost Restructuring: GBP4 million OpEx reduction targeted; just over 60 heads already left the business; ~GBP7 million annualized underlying cost base reduction achieved to date.

Release Date: September 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• H1 revenue increased significantly to GBP11.6 million, with underlying business growth of around 9% excluding the Southern Cross acquisition.

• The acquisition of Southern Cross Diagnostics contributed nearly GBP2 million in revenue and provides access to the fast-growing Australian diagnostics market.

• The launch of the Yourgene Insight DPYD assay, a life-saving product with IVDR approval, expands the product portfolio and addresses a significant clinical need.

• The company signed a 5-year Master Collaboration Agreement with Illumina, enhancing R&D and operational capabilities and derisking future content development.

• Operating costs have been reduced by around GBP4 million over the past 2.5 years, with further restructuring on track to deliver GBP4 million in annualized savings.

• All regions grew year-on-year for the first time in several periods, with the Americas up over 30% and Asia Pac up over 20%.

• The company remains debt-free with a cash position of GBP7.5 million at the end of August, and management firmly denied any risk of…