SourceBio International PLC (AIM:SBI, FRA:6J8) said trading in the third quarter has been strong driven by peak levels of PCR testing, lifting revenues, earnings and cash generation.
However, the lab services provider noted that changes in the Coronavirus (COVID-19) travel guidelines announced earlier this month are expected to reduce the throughput by 70% compared to the third quarter, hitting revenue.
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Full-year revenues are still expected to climb 70% compared to 2020 levels.
The UK is removing Day 2 and Day 8 testing from the end of October for fully vaccinated individuals and lower-risk countries.
SourceBio reckons there will still be interest in PCR testing services, particularly for clinical purposes, to confirm positive results from lateral flow testing, for travel abroad and for arrivals from red list countries.
It also expects “a modest level of mitigation” through the expected revenues generated from the introduction of lateral flow testing and from the scheduled launch in the fourth quarter of PCR testing from its San Diego facility.
It noted that its three other business units are “very well positioned in their respective markets”.
In the six months ended 30 June, revenue rocketed 252% to £37mln, with adjusted underlying earnings (EBITDA) up 570% to £11mln. Cash at period-end was £17mln.