26 September 2017
Interim Results for the Six Months Ended 30 June 2017
Group positioned for additional scale following transformational acquisition of GE Healthcare Dharmacon, Inc.
Cambridge, UK, 26 September 2017: Horizon Discovery Group plc (LSE: HZD), ("Horizon” or "the Group"), a global leader in gene editing and gene modulation technologies, announces its interim results for the six months ended 30 June 2017.
- Group revenue increased 19% to £12.1 million (HY16: £10.2 million)
- Significant improvement in Group gross margin to 64% (HY16: 48%)
- Product revenues increased by 10% to £5.3 million (HY16: £4.8 million) with gross margin expansion to 73% (HY16: 65%) and a strong H2 pipeline in place
- Services delivered revenues of £6.8 million, an increase of 30% (HY16: £5.2 million) with gross margin increase to 57% (HY16: 33%) as the impact of operational efficiencies are realised
- Improvement in Products and Services Loss Before Interest, Tax, Depreciation and Amortisation to £3.6 million (HY16: £(3.9) million)
- Cash balance of £4.8 million as of end of H1 (HY16: £13.0 million) supplemented post-period by over-subscribed £80 million share placing on 23 August 2017
- The Group remains eligible to receive future R&D milestones of up to £208 million plus future product royalties (HY16: £208 million) through its Research Biotech business
- Post period, Horizon completed the transformational acquisition of GE Healthcare Dharmacon, Inc. for consideration of $85 million (comprising $50 million cash consideration and $35 million equity consideration)
Financial Summary and Guidance:
- Based on historical H1:H2 revenue weighting (40%:60%), combined with a strong H2 order book, the Group is on track to achieve FY17 revenue of £30 million - £33 million on an organic basis
- Inclusive of the impact of the acquisition of GE Healthcare Dharmacon, Inc. (“Dharmacon”), Horizon expects to report FY17 revenue in the range of £37 million - £41 million; Dharmacon will be consolidated with effect from 1 September 2017
- Full year EBITDA for the enlarged Group is expected to be approximately break-even prior to exceptional items and discontinued operations
- Realisation of benefits from investments and actions taken in prior years to optimise organisational design and operating efficiency and to further build our commercial capability
- Consolidation of core capabilities expected to result in a c.5% annualised decrease in staffing costs across the Group (exclusive of Dharmacon):
- The relocation of cell line manufacturing capabilities in Vienna, Austria to Horizon’s UK-based in vitro Centre of Excellence with the intention to close the Vienna site by the end of 2017
- Alignment towards high-value activities with associated headcount reductions already announced
“We are very pleased with our progress in the first half of 2017, delivering consistent strong growth as the business continues to scale, and significant margin improvements as steps taken in 2016 to improve operational efficiencies bear fruit. “The acquisition of Dharmacon will be transformational for Horizon across our markets, creating a business which is the global leader in the application of both gene modulation and gene editing technologies. We are delighted to welcome the Dharmacon team, and we expect the strong commercial synergies between both organisations to accelerate revenue growth and considerably support the drive to sustainable profitability of the enlarged business. “With the acquisition and over-subscribed £80 million fundraising complete, and a strong cash position in place, Horizon now has a significant opportunity to embark on an ambitious programme of targeted investment, aggregating the best technologies, IP, and capabilities from around the world to rapidly build a global powerhouse that will help drive the next century of healthcare innovation and better outcomes for patients.”
Dr Darrin M. DisleyCEO of Horizon Discovery Group
An analyst briefing will be held at 09:30am BST on Tuesday 26 September 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 09:25 am BST, to download the presentation slides. Conference call details:
Conference ID: 51691413
Participant dial-in: +44 (0) 2071 928000
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
Darrin Disley, Chief Executive Officer
Richard Vellacott, Chief Financial Officer
Chris Claxton, VP Investor Relations
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
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 designs and engineers cells using its translational genomics platform, a highly precise and flexible suite of DNA editing tools (rAAV, ZFN, CRISPR and Transposon) and, following the acquisition of Dharmacon, Inc., its functional genomics platform comprising gene knockdown (RNAi) and gene expression (cDNA, 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 personalised 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”