Shares in home-testing healthcare company MyHealthChecked (MHC:AIM) surged 25% to 2.6p on Monday after the company said full year profits would be at the top end of market expectations driven by increased demand for its PCR tests.
The requirement for day two PCR (polymerase chain reaction) virus testing brought in by the government at the end of November to prevent the spread of the Omicron variant has boosted demand for the firm’s testing kits.
This means what was anticipated to be a quiet fourth quarter trading period has seen ‘high levels’ of demand for the company’s testing kits, continuing the strong demand reported in the third quarter.
Consequently the board said it was now confident in achieving full year revenues of around £16 million compared with £49,500 last year, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to be at least £2.1 million compared with a loss of £2.7 million.
Current market expectations are for revenues of £15 million and EBITDA of £1.9 million according to figures provided by the company, implying at least a 10% beat to forecasts.
Chief executive Penny McCormick commented: ‘The commercial progress that we've made during the last year has been extraordinary and a real credit to the hard work of our growing team.
‘As well as having a significant positive impact on our financial performance in 2021, this has provided us with a strong base from which to develop our extended product pipeline ready for commercialisation next year.’
The company has established strong commercial partnerships with the UK’s top pharmacy retailers, complementing digital direct-to-consumer and business-to-business channels.
Next year it plans to launch home wellness tests providing indications around weight management, vitamin deficiency, food intolerances, heart health and blood glucose.
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