SourceBio International PLC (LON:SBI) has told investors 2020 results will be in line with expectations and said the current year had started strongly with the award of a surge capacity contract for coronavirus (COVID-19) testing worth up to £7.6mln.
The group said its revenues for the 12 months ended December 31, 2020, were £50.7mln, up from £21.2mln in 2019, while underlying earnings (EBITDA) were up almost five-fold at £14mln (previously £3mln).
It's cash position, meanwhile, was a better-than-expected £8.4mln, while almost £96mln of debt has been wiped out – it was helped in this regard with the proceeds from October’s stock market listing.
SourceBio said it was still waiting for a formal award under Public Health England's National Microbiology Framework for further coronavirus testing work.
However, the surge capacity contract is valid until February 13, 2021, with a potential three-month extension after that.
The company has already processed over 400,000 COVID-19 antigen RT-PCR tests for various parts of the health service.
SourceBio said the strength of its COVID-19 operation would offset fall in demand for cellular pathology testing services caused by the drop in the number of elective surgeries during lockdown.
Expectations for “continued significant earnings growth” remain unchanged, investors were told.
“The company remains strongly capitalised with a loan-free balance sheet which positions us well to deliver further aggressive growth in 2021,” said chairman Jay LeCoque in a trading statement.
“The board is appreciative of the strong support from both long-standing and new shareholders and we look forward to updating shareholders in more detail in due course.”