Circassia, the Oxford Science Park-based medical device company focussed on treating people suffering from respiratory diseases, has seen revenues grow by 17 per cent in the past year, according to figures released yesterday (Thursday).
The company’s market-leading product NIOX uses patented technology to accurately measure Fractional exhaled Nitric Oxide (FeNO).
The group’s full year trading update said revenues were up at at approximately £27.9 million, compared to £23.9 million a year ago, with underlying revenues recovering to 85 per cent of 2019 levels.
On a constant currency basis, revenue growth was 20 per cent.
Gross margins were steady at 68 per cent with recurring revenues also consistent with the previous year at 84 per cent of total revenues.
Management continued to implement the new sales and marketing strategy, focussing particularly on partnered distribution in China and the USA.
This resulted in a significant reduction in operating costs with total expenditure reducing from £27.4 million in 2020 to £18.4 million in 2021.
As a result of the top line growth and the reduction in operating expenses, EBITDA for the NIOX business increased significantly to £2.3 million against a 2020 loss of £6.8 million , whilst Group adjusted EBITDA was positive for the first time at approximately £0.6 million (2020: EBITDA loss £9.1m), ahead of market expectations, which had previously been revised upwards.
Ian Johnson, Circassia’s Executive Chairman, said: “2021 has been a significant year for Circassia with both the NIOX business and the Group achieving positive EBITDA for the first time. The Group is now cash generative and debt free.
With the global pandemic set to continue into 2022, the much-reduced cost base, high levels of recurring revenues and high gross margins provide a considerable degree of resilience.
“The Board believes that these attributes, together with the measures taken to drive top line growth, will deliver further shareholder value over the medium term.”