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Circassia lowers earnings breakeven point after restructuring; annual revenue falls
StockMarketWire.com
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Medical device company Circassia lowered its earnings breakeven point for its Niox business on margin improvements after largely completing restructuring plan. But annual revenue fell on the impact of the global lockdown.
For the continuing Niox business for the year ended 31 December 2020, revenue fell to £23.9 million from £34.6 million.
'The global lockdown which commenced at the start of the second quarter significantly affected testing volumes in the clinical business and delayed studies for our research customers, the company said.
But the EBITDA breakeven point for the Niox business would be lower than previously indicated at around £30 million of annualised revenue, or £32 million for the group following major restructuring of the business.
Following the restructuring, which was largely completed, further savings were delivered, resulting in a revised annual cost base for the Niox business of approximately £21 million.
'2020 has been a transformational year for the Company, which was led by the decision to hand back the Astra Zeneca COPD products in May and the decision to focus on the Niox product line,' the company said.
'In a normal year these are typically 90% of total revenues and, whilst the Covid-19 pandemic impacted these by restricting patient testing, the recovery by the end of year to 86% of Q1 revenues is testimony to the resilience of the business,' it added.
At 8:19am: (LON:CIR) Circassia Pharmaceuticals Plc share price was 0p at 26p
Story provided by StockMarketWire.com
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