Oncimmune Holdings said it expects to cash flow positive this financial year with revenues for the current six months to exceed the whole of its previous 15 months.
The immunodiagnostics group reported revenues of £3.79mln (£3.72mln) in the period to end August 2022, but losses rose to £11.5mln (£5.1mln) as it invested heavily in its immunoINSIGHTS team in the US.
Cash at the year end was £1.43mln, with the group leaning heavily on a debt facility with IPF Partners to fund its US expansion.
Oncimmune said it is likely to breach one of this facility’s covenants under its base case cash flow assumptions in March 2023, though IPF has said in that case it would consider a waiver if certain conditions are met.
A sale or IPO of some of the group’s assets is also under consideration with the intention that a proportion of any proceeds received will be directed towards the repayment of debt.
Adam Hill, chief executive, added: “The ImmunoINSIGHTS business is now seeing improving growth in the first half of this financial year and has a growing number of contracts.
“Whilst short-term challenges remain in the operating environment and in financing, the board is determined to meet these and to enable conversion of the growing pipeline of opportunities to deliver the significant returns available from our differentiated offering and expertise."