NIOX Group PLC on Tuesday said revenue grew in the first half of 2023, driven by performance in Clinical operations, which greatly outweighed falling Research revenue.

Shares in NIOX were up 13% to 72.00 pence each in London on Tuesday morning.

The Oxford-based developer of medical devices for asthma diagnosis and management said first half revenue grew 22% to around £18.8 million from £15.5 million a year earlier, driven largely by core Clinical revenue growth of 29% to around £16.7 million from £13.0 million.

This ‘more than offset’ Research revenue falling 16% to £2.1 million from £2.5 million.

Adjusted earnings before interest, tax, depreciation and amortisation almost doubled to £6.2 million from £3.2 million. This was because of rising Clinical revenue and improved gross margins ‘largely driven by revenue mix together with a reduction in overheads’, NIOX explained.

NIOX also pointed to a ‘strong’ balance sheet. It reported unaudited net cash at June 30 rising 23% to £23.8 million on June 30 from £19.4 million on December 31.

The company said it was now generating ‘sufficient’ operating cashflow to permit ‘both continued investment in the development of its business and the payment of ongoing dividends to shareholders’.

NIOX added it would pay the previously announced special dividend of 2.5p per share on September 15. In early June, the group said it was now at a level where dividend payments were possible.

‘I am pleased to report continued growth in revenues and profits in the first half of the current financial year. It is particularly satisfying to describe the strong growth in our core Clinical business, which continues to benefit from a high degree of recurring revenues,’ said Executive Chair Ian Johnson.

‘We indicated at the time of our [annual general meeting] in May that adjusted Ebitda would be significantly higher than management expectations at the start of the year. After two further full months of strong trading, particularly in the [Asia-Pacific] region, management’s expectations for the year end outturn have been subject to further material upgrade. The company is now in a strong financial position and with positive momentum in the business.’

NIOX said it expects to release its interim results on September 26.

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