Fusion Antibodies strengthens financial position despite revenue decline
Fusion Antibodies
3.50p
16:55 13/09/24
Preclinical antibody discovery and engineering specialist Fusion Antibodies said in its final results on Thursday that despite a challenging year with a decline in revenue, it had strengthened its financial position and expanded its pipeline of opportunities.
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The AIM-traded firm reported audited revenue of £1.14m for the 12 months ended 31 March, down from £2.9m in the 2023 financial year.
However, it saw significant growth in its sales pipeline during the second half, with an order book of £0.75m at year-end, representing 65% of total revenue.
A successful fundraising in February raised £1.37m to support general working capital and further investment in commercial activities.
The company said it ended the financial year with a cash balance of £1.2m, a substantial improvement from £0.2m at the end of 2023, positioning Fusion for future growth.
Following the end of the financial year, Fusion said it had seen increased commercial activity, including a collaboration agreement with the National Cancer Institute for the use of its OptiMAL technology.
Additionally, Fusion received its first purchase order under a master services agreement with a leading diagnostics company, and a follow-on project from a US-based biotechnology client.
“We have had a largely challenging 2024 financial year, with the industry experiencing significant headwinds especially in the venture capital funded biotech sector,” said chief executive officer Adrian Kinkaid.
“A number of clients had consequently delayed initiating their projects with us as a result of this.
“Having said that, we are starting to see an improvement and we did complete a successful fundraise for further investment into the business in February this year.”
Kinkaid said that since the year end, the company had increased commercial activity and had more success, with a number of new agreements signed.
“The OptiMAL programme is continuing to go well, and we are seeing more traction in the field as the year progresses.
“We remain positive about the future of the company and are, as always, thankful to our dedicated shareholders for their constant support.
“As we continue to meet our objectives on our strategy toward breakeven and profitability, we have no plans to raise cash through an equity placement.”
At 1222 BST, shares in Fusion Antibodies were up 11.78% at 3.3p.
Reporting by Josh White for Sharecast.com.