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Horizon Discovery Group Plc: Interim Results for the Six Months Ended 30 June 2018

HORIZON DISCOVERY GROUP PLC
(“Horizon”, “the Group” or “the Company”)


Interim Results for the Six Months Ended 30 June 2018

Accelerating revenue growth and prioritising core markets

Cambridge, UK, 17 September 2018: Horizon Discovery Group plc (LSE: HZD), a global leader in the application of gene editing and gene modulation technologies, today announces its interim results for the six months ended 30 June 2018.

Financial Highlights

  H1 18 H1 17
  At constant currency1Growth As reportedGrowth As reported
  £m% £m% £m
Group        
Revenue 27.3126% 25.1 107% 12.1 
Gross margin    63%  64%
         
Research products        
Revenue 16.7735% 15.3 665% 2.0 
Gross margin    63%  74%
         
Applied products        
Revenue 5.052% 4.6 39% 3.3 
Gross margin    77%  72%
         
Services        
Revenue 5.6-18% 5.2 -24% 6.8 
Gross margin    53%  57%
  • Revenues on a like-for-like basis of £11.1 million (H1 17: £12.1 million), £12.0 million on a constant currency basis (excluding Dharmacon totalling £14.0 million)
  • Dharmacon revenue growth of 5.4% over prior half year period to £14.0 million (£15.3 million at constant currency) on a pro forma basis
  • Reported EBITDA loss before exceptional items2 improved to £2.2 million (H1 17: £5.1 million)
  • Cash balance of £24.9 million (FY17: £28.1 million, H1 17: £4.8 million)

1 Constant currency is included to show the effect of exchange rates on our reported revenues. This is calculated by applying the prior period’s average monthly exchange rate to this period’s results.

2 EBITDA is calculated by adding back exceptional items of £1.6 million, depreciation of £1.7 million and amortisation of £2.3 million to the operating loss of £7.8 million. This demonstrates the operating performance of the Group.

Business Highlights (including post-period end)

  • Terry Pizzie appointed as Chief Executive Officer of the Group
  • Investment strategy implemented to prioritise core markets with highest growth potential
  • Two CRISPR screening agreements signed with major pharmaceutical companies, including AstraZeneca
  • £1.1 million site-wide Bioproduction licence signed with another major pharmaceutical company

Financial Outlook:

  • Strong start to trading in H2 2018
  • Revenues expected to be second half weighted consistent with previous years
  • Revenues slightly ahead of consensus expectations for FY 18
  • Negative EBITDA before exceptional items for H1 18 expected to be offset by positive EBITDA for H2 18

Terry Pizzie, Chief Executive Officer of Horizon Discovery, commented: "I am pleased to report a strong first half performance that saw significant revenue growth due to a robust contribution from the Dharmacon business. We have made a strong start to the second half of the year and, in combination with our sales being second half weighted, we expect revenues to be slightly ahead of expectations for the year. I am particularly pleased at the continued development of our major customer relationships, culminating in two new significant agreements already signed in the third quarter in the key growth area of CRISPR screening.

“Together with the Board and the leadership team, I am excited that we have taken the opportunity since my appointment to update and evolve Horizon’s five-year investment strategy to prioritise and invest in a number of highly promising core growth areas of our business to enhance our market positioning. We are at the cutting edge of a rapidly changing market and of a significant opportunity as gene editing and gene modulation become embedded at an industrial scale into our customers’ workflows.” 

Analyst briefing today
An analyst briefing will be held at 12:00pm BST at the offices of Numis Securities Ltd., 10 Paternoster Sq., London, EC4M 7LT. There will be a simultaneous live conference call and the presentation will be available on the Group's website at www.horizondiscovery.com.

Please visit the website approximately ten minutes before the conference call, at 11:50am BST, to download the presentation slides. Conference call details:

Conference ID: 4789816
Participant dial-in: 0800 376 7922
US Participant dial-in: +1 866 966 1396
Standard International dial-in: +44 (0) 2071 928 000

An audio replay file will be made available by the end of the day on the Group's website at https://www.horizondiscovery.com/about-us/investor-relations. 

For further information from Horizon Discovery Group plc, please contact:

Horizon Discovery Group plc
Terry Pizzie, Chief Executive Officer
Richard Vellacott, Chief Financial Officer
Tel: +44 (0) 1223 655 580

Numis Securities Limited (Broker and NOMAD)
Michael Meade / Freddie Barnfield / Duncan Monteith
Tel: +44 (0) 207 260 1000

Consilium Strategic Communications (Financial Media and Investor Relations)
Mary-Jane Elliott / Matthew Neal / Melissa Gardiner

Tel: +44 (0) 20 3709 5700
Email: horizon@consilium-comms.com

About Horizon Discovery Group plc www.horizondiscovery.com

Horizon Discovery Group plc (LSE: HZD) ("Horizon") is a world leader in gene editing and gene modulation technologies. Horizon designs and engineers cells using its translational genomics platform, a highly precise and flexible suite of DNA editing tools (rAAV, ZFN, CRISPR and Transposon) and, following the acquisition of Dharmacon, Inc., its functional genomics platform comprising gene knockdown (RNAi) and gene expression (cDNA, ORF) tools, for research and clinical applications that advance human health. Horizon's platforms and capabilities enable researchers to alter almost any gene or modulate its function in human or mammalian cell-lines.

Horizon offers an extensive range of catalogue products and related research services to support a greater understanding of the function of genes across all species and the genetic drivers of human disease and the development of personalised molecular, cell and gene therapies. These have been adopted by over 10,000 academic, drug discovery, drug manufacturing and clinical diagnostics customers around the globe, as well as in the Company's own R&D pipeline.

Horizon is headquartered in Cambridge, UK, and is listed on the London Stock Exchange's AIM market under the ticker “HZD”.


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Monday, September 17, 2018 - 07:00