Horizon Discovery Group plc Trading Update
Cambridge, UK, 24 July 2019: Horizon Discovery Group plc (LSE: HZD) ("Horizon" or “the Group”), a global leader in the application of gene editing and gene modulation technologies, today provides a trading update for the six month period ended 30 June 2019. The Group will report its Half Year results on Monday 16 September 2019.
The Group continues to perform well and is trading in line with expectations for the full year. Group revenues for the six months ended 30 June 2019 are expected to be £28.6m (HY18: £25.1m) representing 13.7% growth on the same period in the prior year and 8.6% growth on a constant currency basis. Gross margin is expected to be in excess of 65% (HY18: 63%).
At the Half Year results in September, the Group will report against its new market-aligned business unit structure, comprising Research Reagents, Bioproduction, Diagnostics, Screening and In Vivo, as announced in the Full Year results published on 29 April 2019.
Revenue growth for the first six months has largely been driven by a strong performance in the Group’s Bioproduction and Screening business units. The Diagnostics business unit had a soft first half as a result of some internal organisational challenges. These issues have been identified and necessary corrective action has been taken.
The Group has a customary second-half weighting to trading due to the markets it operates in and the Board expects FY19 revenues to be in-line with current market expectations and expects to maintain a positive EBITDA performance for the full year.
The cash balance at 30 June 2019 was £24.8m (HY18: £24.9m).
Terry Pizzie, Chief Executive Officer of Horizon Discovery, commented:
“Horizon has made a good start to the year and the business as a whole is performing well, with Group revenue and margin in-line with our expectations and a notably strong performance from the Bioproduction and Screening business units. We have experienced some organisational challenges with our Diagnostics business unit, but the corrective action that we have put in place should lead to an improved performance in the second half.
“With our natural second-half weighting and strong order book for the remainder of 2019, we are well positioned to execute our growth strategy as we continue to transform Horizon into a fully commercial tools company.”