Niox reports solid first-half performance

Niox Group reported a solid first-half performance on Tuesday, with revenue increasing 12% to £21m, or 15% on a constant currency basis.

The AIM-traded firm said that growth was primarily driven by the clinical business, which saw an 11% increase in revenue to £18.5m.

Adjusted EBITDA rose to £7.1m, reflecting higher sales and a stable cost base, resulting in an EBITDA margin of 33.8%.

The company’s adjusted basic earnings per share climbed to 1.73p, from 1.57p in the prior year.

It generated £6m in cash from operations, maintaining a strong balance sheet with no debt and a cash position of £21.5m as of 30 June, despite a £4.2m dividend payout.

That cash position included £0.9m allocated to discontinued operations.

Since the period ended, Niox received a $4.5m payment from Beyond Air and announced a tender offer to repurchase approximately 26.25 million shares at 80p apiece, which could return up to £21m to shareholders.

If fully subscribed, the pro forma cash balance would be £6m as of 24 September.

Operationally, Niox said it continued to expand its distributor network in the US and EMEA geographies, targeting areas with untapped potential to drive scalable revenue growth.

The company was also progressing with the development of the ‘Niox Pro’, its next-generation clinical device for asthma diagnosis and management.

“I am pleased to report that the group continues to perform well with good growth in revenues and profits in the first half of the year,” said executive chairman Ian Johnson.

“Cash generation remained strong which has enabled the board to recommend a further return of capital to shareholders by way of a tender offer, details of which are announced today.

“The board remains confident in achieving consensus expectations for the full year.”

At 1147 BST, shares in Niox Group were up 6.58% at 70.34p.

Reporting by Josh White for Sharecast.com.