Diaceutics (DXRX) has announced positive results for their financial year ending 31 December 2019 with highlights inlcuding the succesful IPO which raised £17m at 76p, adding strength to the balance sheet, and 10 new client wins with a critical increase in repeat business.
The company saw an increase of 30% in revenue to £13.4m (2018: £10.4) with gross profit up an impressive 52% to £10.3m (2018: £6.8m). Adjusted EBITDA jumped 60% to £2.4m (2018: £1.5m). The Company finished the year debt free with £11.7m cash as at the period end (FY18: net debt of £1.7m).
Client numbers grew in 2019 with the company now delivering services globally to clients in all top 10 primary pharma markets and 31 secondary markets. Geographic reach continued to grow with a 100% increase in Asian markets. 87% of all business is repeat business.
Peter Keeling, Chief Executive Officer, commented: "Diaceutics has been building its market leading position in the precision testing market for the past 14 years. 2019 has seen us further penetrate the existing precision testing market in key disease areas and global markets whilst at the same time adding the essential scaling pillars for 2020 and beyond to keep the Group in step with a rapidly increasing marketplace."
Over the past 12 months the shares have traded up from 84p to 128p, despite a 20% drop following publication of the results.
Diaceutics is clearly well placed to provide its pharma clients with a global diagnostic commercialisation capability at a time when the marketplace is entering a growth phase. In particular 2020 anticipate the launch of its SaaS Nexus platform which is designed to support multi-year engagements with an increasing number of therapy brands to support their diagnostic needs.
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