Strong trading year prompts Diaceutics to accelerate investment plans
BELFAST-based diagnostics technology firm Diaceutics has reported a strong trading performance over the last calendar trading year and says it plans to "accelerate and enhance the company's investment" in its operations over the next two years.
Diaceutics, a solutions provider primarily to the pharmaceutical industry, said revenues were materially ahead of market expectations.
This was driven by growing demand from its pharmaceutical and life science customers for its recently launched platform driven Insight and Engagement subscription solutions.
In a statement to the Stock Market, the company said sales increased by 44 per cent from £13.9 million to approximately £20 million.
Within this, there was a significant shift to platform-based subscription contracts in the year with more than a third (36 per cent) of revenue now subscription-based compared to just 3 per cent in 2021.
EBITDA for 2022 is anticipated to be in line with expectations of between £3.4m and £3.6m, and at a consistent margin to the previous year.
Its order book value at December 31 soared to £15.6m from just £1.75m a year earlier, and some £9.9m of this is expected to be realised in 2023.
And when Diaceutics closed its accounts at year-end, it had a cash balance of £19.8m and no debt.
Its chief executive Peter Keeling said: “We're delighted to have had such a strong year both financially and strategically, with revenues increasing materially ahead of expectations.
“Our investments in the business during the past year have facilitated significant top line growth, highlighting the extent of the opportunity available to us.”
Separately, Diaceutics also announced two enterprise-level, multi-disease data engagements, with two top 10 global pharmaceutical companies which will deliver a cumulative value of $ 7million (about £5.6m) over a two year period, underlining its continued successful transition to a subscription based model.
Via its proprietary DXRX platform, the company will deliver a number of subscription data services to help these new customers to commercialise their therapeutic treatments more quickly, accurately and efficiently, increasing the uptake by eligible patients and enhancing the organisations' return on R&D investment.
Mr Keeling added: “These enterprise level engagements are a testament to the value placed in our expanding offerings by pharmaceutical and life science organisations.
“The continued strong pipeline build serves to highlight the scale of the opportunity available to us within the market, as we continue to further embed within existing customers and onboard new top pharma companies to the DXRX platform.
“Looking ahead, our position as a trusted precision medicine partner grants us a unique opportunity to expand our offerings beyond initial data insights and into our full suite of commercialisation solutions and advisory services.”