Total revenues tumble as Yourgene winds down Covid services

Molecular diagnostics specialist Yourgene said in a trading update on Thursday that its first-half core revenues were up 14% year-on-year at £8m.

The AIM-traded firm said total revenues on a statutory basis fell to £9.6m for the six months ended 30 September, from £17.5m a year earlier.

It said that reflected its transition away from Covid-19 services, and in total representing more than 40% of consensus market expectations for the full year, consistent with the historical first and second half pattern.

Yourgene said recurring revenues were up 20% to £5.5m, while genomic technologies revenue increased 10% to £6.1m.

The NIPT category was up 18% year-on-year, demonstrating a “continuing recovery” post-pandemic, while the Ranger Technology revenue run rate was now over $2m per annum.

It said its growth pipeline was being converted, including three new NIPT accounts won in the first half and being installed early in the second half.

Genomic services revenues were 26% higher year-on-year at £1.9m, while NIPT services were 50% higher at £1.3m, on the back of Asia reopening post-Covid.

Yourgene also said it was making “steady progress” in building a broader research and oncology service portfolio.

“This continues to be a year of transition for Yourgene, with encouraging delivery of top line performance in the first half creating a solid base for expected future growth,” said chief executive officer Lyn Rees.

“It is particularly pleasing that the core business has shown improved momentum in such difficult macroeconomic conditions.

“Whilst margins have been impacted by the current external environment, we are continuing to reshape the business and are evaluating the best ways to manage costs without constraining future growth where possible.”

Rees said the year-to-date performance informed the board's confidence in the business remaining on track to deliver full-year revenues in line with expectations, and to prioritise market penetration over near-term earnings delivery.

“Yourgene remains well placed to exploit the opportunities available to its growing portfolio of genomic products and services and, with additional partnerships in place and being added, is expanding its market access to create significant strategic value.”

At 1116 GMT, shares in Yourgene Health were down 9.33% at 3.4p.

Reporting by Josh White for Sharecast.com.