SourceBio International (SBI ) expects its FY21 results to be “significantly ahead” of market expectations following considerable growth in both revenues and unaudited adjusted EBITDA.
The Company, which provides integrated laboratory services and products on an international scale, expects to report, subject to audit, revenues of approximately £92.4 million, an increase of 82% on revenues of £50.7 million recorded in 2020, for the year ended 31 December 2021.
In addition, SourceBio also expects to report, subject to audit, revenues of approximately £92.4 million in FY21 an increase of 82% on revenues of £50.7 million recorded in 2020.
Meanwhile, the company also expects to report adjusted EBITDA, subject to audit, of approximately 70% higher than the adjusted EBITDA of £14.2 million recorded in 2020.
Following strong working capital management and robust cash conversion, the Company said its cash position was ‘well ahead of market expectations’ with cash at 31 December 2021 of £33.3m, up from £8.4m in FY20, with no additional bank and shareholder borrowings.
Today, the Group informed investors that its long-standing business units of Healthcare Diagnostics, Genomics and Stability Storage (together known as the group’s “Core Divisions”) are all now back to pre-Covid levels of trading and all are ‘poised to accelerate their growth.’
In particular, the Group’s Cellular Pathology testing services saw “very solid recovery” from 1Q21, although it noted that the pace of growth later in the year was slower than had been anticipated, as COVID-19 continued to impact on the pace of the return of elective surgeries.
PCR testing revenues were healthy in FY21 despite fluctuating, while demand increased as travel restrictions lifted in late 2Q, then reduced in 4Q as Government policy switched from the higher quality PCR testing to lateral flow testing for day two arrivals, SourceBio noted.
The Company highlighted that these levels then bounced back in the latter weeks of the year as the Government mandated a return from lateral flow to PCR testing for day 2 arrivals.
This morning, SourceBio told investors that it has already made a solid start to trading in the new year, adding that it is optimistic in relation to growth opportunities in the Core Divisions.
While forecasting volumes for the infectious disease testing business unit remains difficult for 2022, the Group said it remains committed to maximise revenues and cash generation primarily to redeploy towards funding growth opportunities, to fuel its continued growth.
Looking ahead, the Company expects to announce its preliminary results on 5 April 2022.
Jay LeCoque, Executive Chairman, commented: “I am pleased to report to shareholders substantial revenue and profit growth in 2021, in what has been a record trading year for SourceBio. It is encouraging to see that our base business units have returned to pre-Covid levels of trading and continue to capitalise on significant new growth opportunities. Our Covid-19 testing business performed very well in 2021, particularly given the continued switches in Government policy regarding testing requirements for travel.”
LeCoque added that SourceBio remains “well capitalised” and that the business has benefitted from “very strong cash conversion driving cash balances to over £33 million.
He added: “With a balance sheet free of borrowings, the Group is well positioned to fuel further growth in 2022 through our Core Divisions and to contemplate attractive acquisition opportunities. The Board is appreciative of the dedication and efforts from all its staff in a very challenging year and is also grateful for the support from its shareholders.”
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