Half Year Trading Update

Oxford Nanopore Technologies plc

17 July 2023

 

17 July 2023

Oxford Nanopore Technologies plc

Half Year Trading Update

Strong underlying[1] LSRT revenue growth of approximately 46%, driven by new customer acquisition

Oxford Nanopore Technologies plc (LSE: ONT) ("Oxford Nanopore" or "the Group"), the company delivering a new generation of molecular sensing technology based on nanopores, today provides a trading update for the six months ended 30 June 2023, ahead of results, which will be published on 6 September 2023.

The Group expects to report Life Sciences Research Tools (LSRT) revenue for the six months ended 30 June 2023 of approximately £86 million (H1 2022: £70.6 million), representing year-on-year growth of approximately 22% on a reported basis and 16% on a constant currency basis.

Underlying LSRT revenue growth, excluding revenue from the Emirati Genome Program (EGP) and COVID-19 sequencing, is expected to be approximately 46% on a constant currency basis. Growth continues to be driven by expansion of the Group's customer base.

Outlook

All guidance is unchanged.

The Group continues to expect full year 2023 LSRT revenue growth to be in the range of 16-30% on a constant currency basis. Underlying LSRT revenue, excluding revenue from the EGP and COVID-19 sequencing, is expected to grow by more than 30% per annum on a constant currency basis in both 2023 and in the medium term.

The Group continues to target LSRT gross margin of greater than 60% in 2023 and more than 65% in the medium term.

Based on current development and commercialisation plans, the Group also continues to target adjusted EBITDA breakeven by the end of 2026.

Gordon Sanghera, Chief Executive Officer, commented:

"We have delivered strong underlying revenue growth in the first half of 2023, as demand for our technology continues to grow from an increasingly broad and diverse base of customers. We have also made considerable progress positioning the business for future growth: launching a number of innovative new products and platform updates that provide users with higher accuracy and richer data than ever before; forming significant collaborations to open up new opportunities in clinical and applied markets; and investing to ensure we have the required levels of inventory to support the continued expansion of our customer base."

[ENDS]

This trading update is based upon unaudited management accounts and has been prepared solely to provide additional information on trading to the shareholders of Oxford Nanopore Technologies plc. All figures are provisional and subject to further review.

For further information, please contact:

Oxford Nanopore Technologies plc

Investors:         [e-mail]

Media:              [e-mail]

Teneo (communications adviser to the Company)

Tom Murray, Olivia Peters

[phone]

[e-mail]

About Oxford Nanopore Technologies plc:

Oxford Nanopore Technologies' goal is to bring the widest benefits to society through enabling the analysis of anything, by anyone, anywhere. The company has developed a new generation of nanopore-based sensing technology that is currently used for real-time, high-performance, accessible, and scalable analysis of DNA and RNA.  The technology is used in more than 120 countries, to understand the biology of humans, plants, animals, bacteria, viruses and environments as well as to understand diseases such as cancer. Oxford Nanopore's technology also has the potential to provide broad, high impact, rapid insights in a number of areas including healthcare, food and agriculture. 

Oxford Nanopore devices sequence DNA and RNA directly and sequence short to ultra-long fragments of DNA, for a truly comprehensive picture of the genome. Data is streamed in real-time and can enable rapid insights.  The technology is fully scalable - from pocket-sized to ultra-high throughput devices. 

For more information please visit: www.nanoporetech.com

Forward-looking statements

This announcement contains certain forward-looking statements. For example, statements regarding expected revenue growth and profit margins are forward-looking statements. Phrases such as "aim", "plan", "expect", "intend", "anticipate", "believe", "estimate", "target", and similar expressions of a future or forward-looking nature should also be considered forward-looking statements. Forward-looking statements address our expected future business and financial performance and financial condition, and by definition address matters that are, to different degrees, uncertain. Our results could be affected by macroeconomic conditions, the COVID-19 pandemic, delays in our receipt of components or our delivery of products to our customers, suspensions of large projects and/or acceleration of large products or accelerated adoption of pathogen surveillance. These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements.

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[1] Underlying growth excludes foreign exchange and revenue from the Emirati Genome Program (EGP) and COVID-19 sequencing

 

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