Horizon Discovery Group plc
("Horizon" or "the Company" or "the Group")
Preliminary Results for the Year Ended 31 December 2017
Cambridge, UK, 8 May 2018: Horizon Discovery Group plc (LSE: HZD), a global leader in gene editing and gene modulation technologies, announces its preliminary results for the year ended 31 December 2017.
Highlights (including post period end)
Financial
- Group revenue increased by 52% to £36.5m, 50% on a constant currency basis (FY16: £24.1m)
- Organic Group revenue excluding Dharmacon increased by 14% to £27.5m
- Product revenues increased by 101% to £22.8m, 101% on a constant currency basis (FY16: £11.3m)
- Organic product revenue growth of 22.8% to £13.8 million, excluding acquired Dharmacon revenues
- Services revenues increased by 7% to £13.7m, 4% on a constant currency basis (FY16: £12.8m)
- Group gross margin increased to 62% (FY16: 54%) driven by significantly increased Services margins
- EBITDA from Products and Services before exceptional items and non-recurring site closure costs of £1.1m (FY16: £4.0m loss)
- Closing cash and cash equivalents of £28.1m (FY16: £6.1m) strengthened by £80m(gross) capital raise in August 2017 which satisfied the £38.0m cash consideration component for the Dharmacon acquisition
Operational
- Uniquely positioned to capitalise on significant market opportunity with our addressable markets estimated by management to be worth £2.2 billion and growing at approximately 20% per year
- Transformational acquisition of Dharmacon from General Electric adding gene modulation capabilities, additional revenue and global cross-selling opportunities to the Group
- Strong Dharmacon gross margin of 63% in the four months from 1 September 2017
- Completed the consolidation of Boston high-throughput screening facility and Vienna cell line manufacturing facility into in vitro Centre of Excellence at Cambridge, UK, headquarters
- Strengthened commercial operation and enhanced eCommerce function through Dharmacon acquisition
- Deepening of core gene editing capabilities through global exclusive license of novel Transposon technology and expansion of CRISPR licenses
- Terry Pizzie appointed as Chief Executive Officer of the Group with immediate effect - see separate announcement issued today
Terry Pizzie, the newly appointed Chief Executive Officer of Horizon Discovery, said: "2017 was a transformational year for the Group with: the acquisition of Dharmacon - which is already performing well with more value enhancement synergies becoming apparent every day; an over-subscribed £80 million fundraising; the deepening of our core gene editing capabilities; the strengthening of our commercial operations; and the rationalisation of internal operations, such that the business is fit to scale. These activities have significantly enhanced the Group's operations and Horizon Discovery is now a global leader in the gene editing and gene modulation market and has the technical and commercial platforms in place to deliver significant value for shareholders.
"In the first quarter the Group has made a solid start to the year and is trading in line with Board expectations. We have continued to deliver growth, while implementing operational efficiency and cost control measures that together have put the Group on a path to sustainable and profitable growth. With a clear vision and strategy for the business, a strong team in place focused on delivery, and good long-term growth prospects from our underlying business, we have high confidence for the future."
Ian Gilham, Executive Chairman, added: "Horizon has had a successful 2017 and has established itself as a market leader across the RNAi and CRISPR end-markets, which are expected to grow at a CAGR of approximately 18 percent between 2017 and 2021. Furthermore, given limited direct competition in its core focus areas, the Company expects to accelerate its penetration of multiple fast growing gene modulation and gene editing market segments including engineered in vitro and in vivo disease models, cell based assays and screening, bioproduction and molecular diagnostics, all of which are expected to grow at double-digit percentages in the near term.
"With Terry's appointment today, Horizon has a strong and highly experienced management team who are ideally positioned to execute Horizon's growth plan and create value for shareholders."
ENDS
Analyst briefing
An analyst briefing will be held at 12:00pm BST on Tuesday 8 May 2018 at the offices of Numis Securities Ltd., 10 Paternoster Sq., London, EC4M 7LT. There will be a simultaneous live conference call and the presentation will be available on the Group's website at www.horizondiscovery.com.
Please visit the website approximately five minutes before the conference call, at 11:55 am BST, to download the presentation slides. Conference call details:
- Participant UK dial-in: 0800 694 0257
- Participant US dial-in: +1 631 5107 498
- International dial-in: +44 (0) 1452 555566
- Participant code: 5580199
An audio replay file will be made available by the end of the day on the Group's website at https://www.horizondiscovery.com/about-us/investor-relations.
For further information, please contact:
Horizon Discovery Group plc
Ian Gilham, Executive Chairman
Terry Pizzie, Chief Executive Officer
Richard Vellacott, Chief Financial Officer
Tel: +44 (0) 1223 655 580
Consilium Strategic Communications (Financial Media and Investor Relations)
Mary-Jane Elliott / Matthew Neal / Melissa Gardiner
Tel: +44 (0) 20 3709 5701
Email: horizon@consilium-comms.com
Numis Securities Limited (Broker and NOMAD)
Michael Meade / Freddie Barnfield
Tel: +44 (0) 207 260 1000
About Horizon Discovery Group plc www.horizondiscovery.com
Horizon Discovery Group plc (LSE: HZD) ("Horizon") is a world leader in gene editing and gene modulation technologies. Horizon delivers inspired cell solutions using its translational genomics platform, a highly precise and flexible suite of DNA editing (rAAV, ZFN, CRISPR and Transposon) and modulation (RNAi, cDNA and ORF) tools for research and clinical applications that advance human health. Horizon's platforms and capabilities enable researchers to alter almost any gene or modulate its function in human or mammalian cell lines.
Horizon offers an extensive range of catalogue products and related research services to support a greater understanding of the function of genes across all species and the genetic drivers of human disease and the development of personalized molecular, cell and gene therapies. These have been adopted by over 10,000 academic, drug discovery, drug manufacturing and clinical diagnostics customers around the globe, as well as in the Company's own R&D pipeline.
Horizon is headquartered in Cambridge, UK, and is listed on the London Stock Exchange's AIM market under the ticker "HZD".
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