MyHealthChecked flags 'stronger than expected' first half

Home-testing healthcare company MyHealthChecked said in an update on Wednesday that trading in its first half was stronger than expected, and ahead of management budgets.

The AIM-traded firm said the performance was driven by “significant growth” in consumer demand for the higher-volume, but lower-margin, Covid-19 lateral flow test kits for at-home use via the UK's top two high-street pharmacy retailers.

As a result, revenues for the six months ended 30 June were expected to be £9.8m, up from £3.3m year-on-year, with a positive EBITDA position expected, swinging from a £0.2m loss in the first half of 2021.

Cash balances at period end had also increased, to £7m from £2.2m, as the company continued to invest across the business for future growth.

Looking ahead, MyHealthChecked said although the recent increase in Covid-19 infection rates had led to a “significant increase” in demand for lateral flow test kits in recent weeks, it was an “unpredictable and volatile” market, making it difficult to predict how long the increased demand would last.

However, given the level of sales achieved to date and the firm’s current order book, the board said it was confident that revenues for the full year would exceed those achieved during the year ended 31 December 2021.

“We are extremely pleased with the continued COVID-related revenues that have been achieved in the first half, alongside the launch of our suite of at-home wellness tests,” said chief executive officer Penny McCormick.

“The global economy is seeing recovery from Covid, however trends indicate that priorities remain with Covid testing.

“Whilst we will continue to monitor this and provide our services directly and through the UK's top high street pharmacy retailers, our focus now shifts to our wellness tests that we will be launching with Amazon shortly.”

McCormick said the MyHealthChecked team had proven to be “flexible and adaptable” to the firm’s changing circumstances, with the Covid testing business providing “great insight” into consumer home testing trends that the company believed were “here to stay”.

“As our focus shifts to the wellness testing market, I am very pleased with the feedback around our recently launched tests and look forward to providing investors with an update on our new products later in the year.”

MyHealthChecked said it would publish its unaudited results for the six months ended 30 June in September.

At 1549 BST, shares in MyHealthChecked were down 8.89% at 2.05p.

Reporting by Josh White at Sharecast.com.