Source - SMW
Horizon Discovery Group's revenue increased 19% to £10.2 million in the six months to the end of June.

Horizon's products business reported strong revenues of £4.8 million during the period (HY15: £3.0 million), with molecular reference standards products continuing to be a particularly strong driver of organic growth. 

Horizon's services business delivered revenue of £5.2 million (HY15: £5.4 million) during the period, with solid growth in in vivo and in vitro service revenues offset by a reduction in molecular screening revenues as it decided to temporarily reduce operating capacity in order to consolidate its screening operations from Boston, US to its new UK headquarters - a decision, it says, that will allow it to operate the business at enhanced future profitability.

It adds: "As expected, revenue recognised from the Research Biotech business was £0.1m (HY15: £0.2 million), and we formed our Avvinity joint venture which holds the potential to add significant equity upside value to the Group.

"Operating expenditure for the period was £11.2 million (HY15: £10.6 million), in line with expectations as the business invests in the scalable infrastructure that will support the transition to positive EBITDA in 2017."

Operating expenditure included non-cash items of £2.2 million (HY15: £2.0 million) in respect of amortisation of acquired intangible assets, depreciation and share option charges. In addition, an exceptional credit of £0.5 million was recognised relating to contingent consideration on acquisitions.

Loss after tax for the period was £6.0 million (HY15: £6.6 million), in line with the board's expectations for the first half of the year.
Cash balances as of 30 June 2016 were £13.0 million (FY15: £25.1 million) following one-time capital investments in the new headquarters, business automation systems such as ERP and manufacturing automation and Avvinity Therapeutics that are expected to deliver significant long term value for the Group.

Chief executive  Dr Darrin Disley said: "Horizon is making a fundamental contribution to the rapidly growing personalised and genomic medicine markets by deploying our proprietary gene editing platform to build cells and then apply them in an increasingly broad range of applications including genomics research, drug discovery and development, clinical diagnostics and drug manufacturing.  

"Today, our core cell building platform and catalogue of over 23,000 products drives our 'commercial fly-wheel', an engine that generates multiple revenue streams from our cell-based assets.  We are pleased to report continued revenue growth driven in particular by continued momentum in our Products business.

"Since our IPO in 2014, Horizon has made strategic investments to build an optimal business model for exploiting our technology platforms and achieve our strategic goal of becoming EBITDA positive in 2017, and sustainably profitable thereafter. 

"We have today announced changes to the shape of our business that will allow us to focus on our core strengths, continue to scale the business on a significantly reduced cost base and drive considerable growth, integration and innovation.

"We are pleased with the progress delivered during the past six months and look forward, with confidence, to building on this in the second half of the year and beyond given the encouraging prospects for our newly shaped business.  We already see signs in H2 of strong business growth and we have a clear route to profitability." 

At 8:07am: (LON:HZD) Horizon Discovery Group Plc share price was +1.5p at 166.5p