Upgrade to full-year revenue guidance

RNS Number : 1553P

Oxford Nanopore Technologies plc

14 October 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE  UK  VERSION OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH FORMS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

14 October 2021

Oxford Nanopore Technologies plc

Trading update

Upgrade to full-year revenue guidance

Oxford Nanopore Technologies plc (the "Group"), the company behind a new generation of nanopore-based sensing technology, today provides an update on its trading performance and increases guidance for core Life Science Research Tools ("LSRT") revenue growth for the current financial year.

The significant increase in demand seen in the first half of the year to 30 June 2021 has continued through the third quarter, and September saw the strongest ever trading month in the Group's history. 

All three of the Group's customer segments (as set out in its Prospectus dated 30 September 2021) have contributed to strong LSRT growth in the period. 

Drivers of LSRT¹ growth included continued demand for the Group's products for sequencing the SARS-CoV-2 virus, increasing demand for the Group's products for large-scale human genomics programmes and the addition of new customers across other areas of genomics research.

As disclosed in its Prospectus, the Group was previously targeting LSRT revenue growth of 30-40% in the year ended 31 December 2021 ("FY21") on a constant currency basis, excluding the potential impact of an expansion of the Group's activities with the large-scale human genomics programme in the UAE.

Given the strong trading outlined above, and the Group's expectations for the remainder of the financial year, the Group is now expecting LSRT revenue growth of 60-70% in FY21², calculated on a constant currency basis. 

The revised expectation excludes the potential FY21 impact of an expansion, if any, of the Group's activities with the large-scale human genomics programme in the UAE.  The Group remains in discussions with the UAE customer at this time and anticipates that a new contract, if any, would result in revenues primarily after FY21.

Notes

1.  As per the Prospectus,  LSRT compromises three customer categories according to the value of invoiced revenue they generated for the Group in the previous 12 months:

"S1" customer accounts generate invoiced revenue less than $25,000. Customer accounts in this category are typically users of the low-cost MinION device and are usually supported with a 'light touch' customer journey. Customers in this category with strategically important applications, or potential to grow, are typically offered additional services, in order to support their growth.

"S2" customer accounts generate invoiced revenue between $25,000 and $250,000. Customer accounts within this category could be users of the MinION, GridION or PromethION devices. Such customers are typically supported with a blend of online and office- based resources, and in-field resources are deployed to ensure customer success. Many of these customers either choose to purchase additional services or are targeted with additional in-house and field based support due to their potential to grow into larger customers.

"S3" customer accounts generate invoiced revenue in excess of $250,000. Typically, customers in this category run networks of GridIONs or PromethION devices with larger or more complex projects, or have high-impact uses. These customers are typically supported by designated field-based account managers and support teams.

2. LSRT delivered revenue of £65.5m in FY20

The person responsible for arranging the release of this announcement on behalf of the Company is Hannah Coote, Company Secretary of Oxford Nanopore Technologies plc.

Media Enquiries

[e-mail]

Tulchan Group (communications adviser to the Company)

Tom Murray, Olivia Peters, Deborah Roney

[phone]  [e-mail]

 

END

 

 

TSTZZMMGVDNGMZM