International molecular diagnostics group Yourgene Health (YGEN:AIM) reported revenues up a mere 5% to £8.2 million for the six-months to 30 September, a period impacted by Covid-19 restrictions. The shares dropped 6.4% to 18.4p on the news.
Pandemic-related lockdowns inhibited cross-border shipments and in-country non-invasive pre-natal testing in Japan and India which was offset by strong testing volumes in the recently purchased French distribution business.
The delays in launching new customer sites have now been resolved leading to strong momentum since the period end. Meanwhile UK revenues shot up 40% to £1.5 million driven by Covid-19 related products and services.
This helped drive additional growth for the Molecular Genetics segment, which comprise a portfolio of products, services and technologies in the cancer, research and infectious disease markets.
Yourgene’s Covid-19 testing service has achieved its initial 10,000 tests per month target with the goal of reaching 20,000 tests per month by January 2021, equivalent to £1 million a month in revenues with room for expansion to meet increased demand.
With lab testing now returning to normal the company expects pre-Covid-19 trends to re-establish themselves.
Broker Stifel expects revenues for the year ended 31 March 2021 to grow 55% to £25.8 million while noting a healthy balance sheet with £11.9 million in cash at the period end.