SourceBio International plc (LON:SBI) Executive Chairman Jay LeCoque discusses the company’s trading update for the year ended 31st December 2020.
- You announced a strong trading update for the year ended 31 December 2020. What are the key financial highlights?
The two main takeaways from the strong trading update were that we expect the full year results in-line with expectations with an almost fivefold increase in adjusted EBITDA and strong balance sheet position.
- How is your company involved in providing COVID-19 testing services?
Essentially, SourceBio International plc is a leading provider of laboratory services to Blue Chip Pharma, NHS & Private hospitals, with four main areas of focus:
- COVID-19 Antigen RT-PCR testing
- Environment controlled stability storage
- Pathology testing services & companion diagnostics, and
- DNA sequencing
Centrally placed to capture the COVID-19 testing opportunity the Company is already contributing significant revenue and cash flow with our AIM IPO in October 2020 designed to quickly scale up our COVID-19 testing services. Our main facility is in Nottingham, UK.
- What impact will the third lockdown have on revenues overall?
The UK’s third lockdown has come about because of a dramatic rise in COVID infections and as we’ve seen from various Government announcements COVID testing is more important than ever before and this is what is driving the performance of our business in terms of both revenue and earnings growth. As we said in our trading update we expect revenues for 2020 to grow from £21m (2019) to c. £50.7m and our broker Liberum expectes this growth to continue into the current year with forecast revenues of £156.8m for 2021. Over the same timescales we expect to see earnings grow by almost fivefold for 2020 and expect to announce adjusted EBITDA for the year ended 31 December 2020 of c. £14m. Market forecasts expect adjusted EBITDA for 2021 to increase further to well over £50m.
- What should investors be looking out for in terms of news flow over the coming months.
Outside of typical financial calendar announcements, in terms of milestones, given that we are in the middle of a pandemic, investors should expect to see more COVID-19 testing agreements
