This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of UK MAR.  The persons taking responsibility for this announcement are the Company contacts named below.

NIOX GROUP PLC

("NIOX" or the "Company" and, together with its subsidiaries, the "Group")

Trading Update

Continuing growth driven by Clinical Business

Oxford, UK - 18 July 2023: NIOX Group plc (AIM: NIOX), a company engaged in the design, development and commercialisation of medical devices for asthma diagnosis and management, today announces a trading update for the six months ended 30 June 2023 ("H1 2023").

Highlights

·      Revenue growth of 22% to approximately £18.8m

·      Core Clinical revenue growth of 29% to approximately £16.7m 

·      Adjusted EBITDA¹ of approximately £6.2m (H1 2022: £3.2m)

·      Strong balance sheet with cash of £23.8m (31 December 2022: £19.4m)

Unaudited revenues for the six months ended 30 June 2023 were approximately £18.8m, up 22% on the same period last year (H1 2022: £15.5m).   Clinical revenues grew 29% to approximately £16.7m (H1 2022: £13.0m).  The strong performance in Clinical revenue more than compensated for a reduction in Research revenues to £2.1m compared with what was a strong H1 in 2022 (£2.5m).

Strong growth in clinical revenues, improved gross margins largely driven by revenue mix together with a reduction in overheads period on period has resulted in H1 2023 adjusted EBITDA¹ of approximately £6.2m compared with £3.2m in H1 2022.

Unaudited net cash at 30 June 2023 was £23.8m (31 December 2021: £19.4m) with the Group's continuing activities producing a cash inflow of £5.5m in the period.  Returns payments for the discontinued COPD business during the first half, were £1.1m and there were no rebate payments or claims in the first half. 

As previously announced, a special dividend of 2.5p per share (equating to a return of cash of approximately £10.5m) will be paid on 15 September 2023 to shareholders on the register as at the close of business on Friday 18 August 2023.  The Group is now generating sufficient operating cashflow to permit both continued investment in the development of its business and the payment of ongoing dividends to shareholders.

NIOX expects to release its Interim Results for the six months ended 30 June 2023 on 26 September 2023.

Ian Johnson, NIOX's Executive Chairman, said: "I am pleased to report continued growth in revenues and profits in the first half of the current financial year. It is particularly satisfying to describe the strong growth in our core Clinical business, which continues to benefit from a high degree of recurring revenues.

We indicated at the time of our AGM in May that adjusted EBITDA¹ would be significantly higher than management expectations at the start of the year.  After two further full months of strong trading, particularly in the APAC region, management's expectations for the year end outturn have been subject to further material upgrade.

The Company is now in a strong financial position and with positive momentum in the business.  I look forward to updating shareholders again at the time of the half-year results."

¹ Adjusted EBITDA excludes depreciation, amortisation, impairment and share option charges

Contacts

NIOX

Ian Johnson, Executive Chairman                                                                   Tel: +44 (0) 1865 405 560

Michael Roller, Chief Financial Officer

Singer Capital Markets (Nominated Adviser and Broker)

Aubrey Powell/ Jen Boorer                                                                                Tel: +44 (0) 20 7496 3000

About NIOX

Our mission is to improve asthma diagnosis and management by greater patient access to FeNO testing. Asthma is one of the biggest healthcare issues globally with 340 million sufferers, many of whom are undiagnosed or are misdiagnosed. The Group is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a precise biomarker for asthma. Our market leading device, NIOX VERO®, is increasingly recognised by healthcare professionals as an important tool to improve the diagnosis and management of asthma. NIOX VERO® is also the device of choice by leading clinical research organisations for respiratory studies.

NIOX provides products and services via its direct sales organisation and extensive distributor network in 50 countries. For more information, please visit www.niox.com