Home testing healthcare company MyHeathcareChecked (MHC:AIM) has raised full-year profit guidance for the second time in a month.
The company said it has continued to experience strong trading throughout the fourth quarter due to increased demand for re-instated day-two PCR test kits as well as its rapid antigen test and verification service for outbound and inbound passengers.
Full-year revenues to 31 December are now expected to be around £16.3 million compared with £49,500 last year, a 2% higher outturn than indicated on 13 December.
Meanwhile EBITDA (earnings before interest, taxes, depreciation, and amortisation) is expected to be £2.5 million compared with a £2.7 million loss last year, which is around 9% higher than previously indicated.
The company expects to be cash generative for the year with the board anticipating cash balances of at least £6.3 million at the year end compared with £0.47 million last year.
The shares initially opened around 9% higher, but subsequently fell back to trade down 5% to 2p as investors weighed up the impact of government plans this week to remove pre-and-post travel PCR testing requirements.
REINVESTING FOR THE FUTURE
MyHeathcareChecked isn’t resting on its laurels and will use the strong performance in 2021 to reinvest earnings into its new product pipeline of at-home wellness tests and it remains on track to launch five new tests in the first half of 2022.
Chief executive Penny McCormick commented: ‘We have worked to harness the opportunity that the COVID testing market has provided for us and the earnings generated have created significant growth in the business which we will continue to build upon in 2022.
‘While there is still market uncertainty about the future of COVID testing, we are set to reinvest our earnings into the delivery of our growing product pipeline in 2022, and I look forward to providing future updates to investors.’
