SourceBio International PLC (AIM:SBI) said “significant growth” is anticipated for its second half after revenues and earnings soared in the first six months of the year.
In a trading update for the six months to June 30, the laboratory services provider reported that adjusted earnings (EBITDA) had jumped to £11.2mln from £1.7mln a year ago, while revenues surged to £37.3mln from £10.6mln in 2020.
READ: SourceBio International says recent trading significantly ahead of last year
The company said that its cellular pathology business had recovered following the impact of the COVID-19 pandemic as elective surgeries returned, adding that its business units of healthcare diagnostics, genomics and stability storage are all now back to normal levels of trading.
Looking ahead, SourceBio said it expects a “strong second half bias” to revenues, earnings and cash generation, largely driven by the phasing of COVID-19 testing revenues generated through its newest business unit, infectious disease testing.
The company said it is planning for a “significant uplift” in demand in the third quarter as the relaxation of travel restrictions boosted demand for COVID-19 testing, adding that it has already seen a “marked uptick” in testing volumes in July.
SourceBio also said that travel in its current quarter will be “a key indicator to the full year outturn” and that it believes it is currently trading in line with expectations despite the “fluid” business environment.
"We are pleased with progress in the first half year and are looking forward to capitalising on the further opportunities we expect in the second half. More specifically, travel related COVID-19 testing services and the increased pace of elective surgeries leading to greater Cellular Pathology services demand. We are already seeing and expect a very busy second half year," SourceBio executive chairman Jay LeCoque said in a statement.