Our market leading device, NIOX VERO,® is increasingly recognised by healthcare professionals as an important tool to improve thediagnosis and management of asthma.
Asthma is one of the biggest healthcare issues globally with 340 million sufferers, many of whom are undiagnosed or are misdiagnosed. NIOX is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a precise biomarker for asthma.
NIOX VERO® is also the device of choice by leading clinical research organisations for respiratory studies. NIOX provides products and services via its direct sales organisation and extensive distributor network in 50 countries.
For more information, please visitwww.niox.com
An introductory presentation about the NIOX Group is available at:www.investors.niox.com/resource/category/presentations/
Contents
Strategic report
Executive Chairman's statement 8
Financial highlights 10
Operational highlights 11
Business review 12
Operating review 16
Our stakeholders 18
Strategy and business model 22
Financial review 24
Corporate social responsibility 28
Risks and risk management 32
Corporate governance
Board of Directors 38
Corporate governance report 42
Audit and Risk Committee report 46
Nomination Committee report 50
Remuneration Committee report 52
Directors' report 66
Statement of directors' responsibilities 68
Independent auditors' report 70
Group financial statements
Consolidated statement of comprehensive income 80
Consolidated statement of financial position 82
Parent Company statement of financial position 83
Consolidated and Parent Company statements of cash flows 84
Consolidated statement of changes in equity 85
Parent Company statement of changes in equity 86
Notes to the financial statements 87
Other information
Reconciliation of alternative performance measures 128
Shareholder information 129
Executive Chairman's statement 8
Financial highlights 10
Operational highlights 11
Business review 12
Operating review 16
Our stakeholders 18
Strategy and business model 22
Financial review 24
Corporate social responsibility 28
Risks and risk management 32
STRATEGIC REPORT
Executive Chairman's statement
I am pleased to report continued strong growth in revenues and operating profit for 2023
Revenue was up 18% to £36.8 million, with our Clinical business performing particularly well growing 29% in constant currency terms.
Adjusted EBITDA improved significantly from £7.3 million in 2022 to £11.4 million in 2023 equating to an operating margin of 31% (2022: 23%). Cash generation remained strong with year-end net cash of £19.9 million, following the payment of a special dividend amounting to £10.5 million in September 2023. The Board is therefore recommending the payment of a final dividend for the financial year ended 31 December 2023 of 1 pence per share. Going forward, the Board intends to pursue a progressive dividend policy, growing future dividends in line with earnings.
Management is continuing to implement the strategy of deepening and broadening global distribution, which coupled with outsourcing sales and manufacturing is expected to drive further profitable growth.
Whilst the current focus is on growing sales in primary care, looking ahead, the Company plans to introduce FeNO testing in other healthcare channels such a pharmacies and occupational health and ultimately to launch a product for use by patients to manage their condition at home.
The Group has made a positive start to 2024 and continues to be highly cash generative, with cash of £22.4 million at 29 February 2024. The Company has a robust strategy in place to expand the business and generate profitable growth from the large underserved target market and has the financial resources to achieve its objectives and further enhance shareholder value.
Ian Johnson Executive Chairman
STATEGIC REPORT Financial highlights
NIOX® sales
Clinical revenue growthGroup adjusted EBITDA
£36.8m24%
£11.4m
Revenue growth of 18% to £36.8 million (2022: £31.3 million) and 22% on a constant currency basisClinical revenue1 growth of 24% (29% on a constant currency basis) to £32.6 million (2022: £26.2 million)Group adjusted EBITDA2 of £11.4 million, in line with upgraded consensus estimates (2022: £7.3 million)
Net cash
31 DEC 2023 £19.9m
£19.9m
(31 December 2022: £19.4m)
31 DEC 2022 £19.4m
Financial progress
Revenue
36.8
31.3
Gross margin
72%
71%
Total expenditure3
(15.1)
(14.9)
Adjusted EBITDA2
11.4
7.3
Adjusted EBITDA2 margin
31.0%
23.3%
Operating profit
4.6
1.8
Beyond Air settlement consideration
-
8.1
Profit before tax
4.1
10.5
Profit for the year from discontinued operations
1.2
2.0
Profit for the financial year
10.7
16.1
Cash at year end
19.9
19.4
1 Clinical revenue represents sales to physicians and hospitals for use in clinical practice.
2 Earnings before interest, tax, depreciation, amortisation and share option charge. Adjusted EBITDA reconciles to operating profit as shown on page 128.
3 Excludes depreciation, amortisation and share option charge. Total expenditure reconciles to the consolidated statement of comprehensive income as shown on page 128.
10
2023 £m | 2022 £m |
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NIOX Group plc published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 17:41:07 UTC.