SourceBio International PLC (LON:SBI) shares advanced after it reported strong revenue and profit growth in 2020 driven by its (Coronavirus) COVID-19 antigen testing services and its Infectious Disease Testing business unit, set up last May.
The company’s COVID-19 unit enabled high volume laboratory based testing with the group handling some 10,500 tests per day by the end of 2020.
It was further boosted in late 2020 with acceptance into an Increasing Capacity Framework Agreement with NHS England to hand cancer test services, with the government initiative aimed at reducing the backlogs which accrued during the pandemic.
Revenue rose by 129% to £50.7mln, from £21.2mln, whilst gross profit increased 135% to £20.5mln from £8.7mln. Earnings (adjusted EBITDA) were marked some 369% higher at £14.2mln versus £3mln in 2019.
The company generated £6.4mln of cash from operations, up 120% from £2.9mln in the year before. It ended the year with £8.4mln of cash.
Executive chairman Jay LeCoque described it as “an extremely busy year” and also highlighted the company’s successful listing on AIM in October.
“The results have been dominated by the provision of COVID-19 testing services and, accepting the ongoing impact of the COVID-19 pandemic, the board remains pleased with performance across all areas of the business,” LeCoque said.
“The group remains strongly capitalised with no borrowings, which positions us well to deliver further aggressive growth in 2021.
“In particular for 2021, we see Infectious Disease Testing revenues coming from a number of technologies, platforms and locations, fixed and mobile.”
In London, SourceBio shares gained 14p or 7.57% to trade at 199p.