BELFAST-based diagnostics technology firm Diaceutics is reflecting on a "transformational year" after reporting that revenues soared 40 per cent to £19.5 million and gross profit was up 37 per cent to £16.7 million.
And the company’s continued transition to a platform business model has been hugely successful, with 35 per cent of revenue subscription based, increasing from 3 per cent in 2021.
That shift has significantly improved the visibility of future revenue, with its order book value at the end of December growing to £16.9m, of which around three quarters (£10.9m) is expected to be realised this year.
Diaceutics’ strong balance sheet, with cash and cash equivalents of £19.8m, no debt, and £0.1m cash flow generative for the year, has allowed it to accelerate the investment strategy it announced in January.
Operationally, the company has seen continued strong adoption of the DXRX platform in the second full year since its launch.
Diaceutics says it has seen an increase in the number of brands under management to 56, and 76 per cent of revenue generated by the platform-based data ‘Insight’ and tech-enabled ‘Engagement’ solutions, a 79 per cent revenue growth in these areas.
Indeed during the year the company recruited 290 laboratories on to its DXRX platform, taking the total to 851 in 38 countries.
“We have delivered another year of significant financial and operational progress, increasing revenues materially ahead of initial expectations, driven by the demand from our pharma customers for our expanded offering of platform solutions,” chief executive Peter Keeling said.
“The progress we have seen to date is transformational. It serves to validate our strategy and highlights the true scale of the opportunity available for Diaceutics as the precision medicine market continues to expand at pace.
“And as announced in January this year, we have accelerated our investments into our platform, data and partner network, which will allow us to capitalise on this momentum and seize the market opportunity.”
He added: “Our ongoing transition to a subscription model has significantly enhanced our order book visibility, while the strong balance sheet gives the board great confidence that the group is well positioned to pursue its accelerated investment strategy.
“While cognisant of the wider macroeconomic environment, we expect to maintain our positive momentum while continuing to achieve sustainable growth and value for shareholders.
“As Diaceutics continues to expand its platform offering and execute against its strategic goals, we look to the future with confidence as we work to become the primary partner for pharma or biotechs launching a precision medicine.”
