Q4 2026 Cambridge Nutritional Sciences PLC Earnings Call

September 8, 2026

Operator: Investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to James Cooper, CEO. Good afternoon, sir.

Speaker #1: Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen.

Speaker #1: Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it is appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I'd now like to hand you over to James Cooper, CEO. Good afternoon, sir.

Speaker #2: Good afternoon, everyone, and welcome to the annual results update presentation for the year ended 31st of March 2026. Today, I'm joined by Adria Patel as CFO, and together audited results, which will be followed by a question-and-answer session.

James Cooper: Good afternoon, everyone, and welcome to the annual results update presentation for the year ended 31 March 2026. Today, I am joined by Ajay Patel, our CFO, and together we are going to present a summary of our audited results, which will be followed by a question and answer session. Before we start the presentation, I want to just apologize for the delay in releasing these results and this presentation. This delay was not related to the FY26 performance and was to do with historical items on the balance sheet. Unfortunately, the issue only came to light in the final stages, and due to auditor and company bandwidth, we were forced to delay the announcement as we would not want to proceed with unaudited results, even if we were confident that the key numbers would remain unchanged.

Speaker #2: Before we start the presentation, I want to just apologize for the delay in releasing these results and this presentation. This delay was not related to the FY26 performance and was to do with historical items on the balance sheet.

Speaker #2: Unfortunately, the issue only came to light in the final stages, and due to auditor and company bandwidth, we were forced to delay the announcement, as we did not want to proceed with unaudited results, even if we were confident that the key numbers would remain unchanged.

Speaker #2: I am now pleased to confirm that we have received approval, and the results were released this morning and featured in this presentation are fully audited.

James Cooper: I am now pleased to confirm that we have received approval, and the results released this morning and featured in this presentation are fully audited. Now, onto the obligatory important notice. For those of you who are new to the company or were unable to join the last Investor Meet Company presentation, my name is James Cooper, and I am the CEO at Cambridge Nutritional Sciences, the parent company for Omega Diagnostics. I graduated from the University of Cambridge with a master's in material sciences and then spent nearly 10 years working at Chartwell, an international operations consultancy. During this time, I led projects delivering step changes in the operational efficiencies of manufacturing companies across a wide range of industries.

Speaker #2: Now, onto the obligatory and important notice. For those of you who are new to the company or were unable to join the last investor meet or company presentation, my name is James Cooper, and I'm the CEO at Cambridge Nutritional Sciences, the parent company of Omega Diagnostics.

Speaker #2: I graduated from the University of Cambridge with a Master's in Material Sciences, and then spent nearly 10 years working at Chartwell, an international operations consultancy.

Speaker #2: During this time, I led projects delivering step changes in the operational efficiencies of manufacturing companies across a wide range of industries. I joined CNS in January 2024 as Operations Director, and I spent the first few months working directly with the team to improve production before joining the board as COO and widening my remit beyond production.

James Cooper: I joined CNS in January 2024 as operations director, and I spent the first few months working directly with the team to improve production before joining the board as COO and widening my remit beyond production. In August 2024, I took on the role of interim CEO and was then appointed permanently in March 2025. Being the CEO of CNS is a privilege, and I am pleased to be working with a group of talented and motivated individuals. Working together as a team, we deliver great results.

Speaker #2: In August 2024, I took on the role of interim CEO and was then appointed permanently in March 2025. Being the CEO of CNS is a privilege, and I'm pleased to be working with a group of talented and motivated individuals. Working together as a team, we deliver great results.

Speaker #3: Good afternoon. I’m Adria Patel. I joined Omega in January 2025 as the CFO of Omega and then joined the board six months later, in July 2025.

Ajay Patel: Good afternoon. I'm Ajay Patel. I joined Omega in January 2025 as the CFO of Omega, and then the board 6 months later in July 2025. I've got significant experience over 30 years as a CFO, working with a multitude of companies, ranging from FTSEs to SMEs in both the UK and globally, with specialisms in startups, growth businesses, and turnarounds. My experience covers a number of areas, including retail, healthcare, logistics, and e-commerce.

Speaker #3: I've got significant experience—over 30 years—as a CFO, working with a multitude of companies ranging from FTSEs to SMEs, in both the UK and globally, with specialisms in startups, growth businesses, and turnarounds.

Speaker #3: My experience covers a number of areas, including retail, healthcare, logistics, and e-commerce.

Speaker #2: In this presentation, we will initially focus on the year in review before moving on to the outlook for the coming year. Before we get started, I'd like to give a brief introduction to CNS for any new investors joining us today.

James Cooper: In this presentation, we will initially focus on the year in review before moving on to the outlook for the coming year. Before we get started, I'd like to give a brief introduction to CNS to any new investors joining us today. Our purpose is to empower people to take charge of their health by unlocking the power of personalized nutrition. This statement focuses in on the personalized nutrition segment rather than the wider functional medicine sector. This is the space in which we aim to increase our reach, position, and share the market. Our vision is to put personalized nutrition at the heart of global healthcare. We feel that this is the core focus and guides our education and marketing efforts as we see the role and impact that nutrition plays on the health and wellbeing of individuals only increasing as further research is published.

Speaker #2: Our purpose is to empower people to take charge of their health by unlocking the power of personalized nutrition. This statement focuses on the personalized nutrition segment rather than the wider functional medicine sector.

Speaker #2: This is the space in which we aim to increase our reach, position, and share of the market. Our vision is to put personalized nutrition at the heart of global healthcare.

Speaker #2: We feel that this is the core focus and guides our education and marketing efforts, as we see the role and impact that nutrition plays on the health and well-being of individuals only increasing as further research is published.

Speaker #2: And finally, our mission is to manufacture and develop the best-in-class diagnostic products that enable fast, accurate, and reliable insights, advancing our position as a leader in personalized nutrition.

James Cooper: Finally, our mission is to manufacture and develop best-in-class diagnostic products that enable fast, accurate, and reliable insights, advancing our position as a leader in personalized nutrition. This reflects our position in the value chain as the manufacturer of high-quality products and a service provider of fast and accurate results. It reflects our strengths in the market, and by maintaining and growing these, we secure our position as a leader in the space of food sensitivity testing. Our portfolio consists of 4 key brands. Our flagship product, FoodPrint, is a lab-based ELISA test using microarray technology. Patients require just a few drops of blood, which can be taken at home or in clinic, and using this, it's able to analyze the IgG antibody response to over 200 foods. Food Detective is our point-of-care test, which can be used by professionals to generate results in just 40 minutes.

Speaker #2: This reflects our position in the value chain as the manufacturer of high-quality products and the service provider of fast and accurate results. It reflects our strengths in the market, and by maintaining and growing these, we secure our position as a leader in the space of food sensitivity testing.

Speaker #2: Our portfolio consists of four key brands. Our flagship product, FoodPrint, is a lab-based ELISA test using microarray technology. Patients require just a few drops of blood, which can be taken at home or in clinic, and, using this, it is able to analyze the IgG antibody response to over 200 foods.

Speaker #2: FoodDetective is our point-of-care test, which can be used by professionals to generate results in just 40 minutes. This is the ability to analyze a response to 59 commonly consumed foods.

James Cooper: This has the ability to analyze a response to 59 commonly consumed foods. Gut Detective is a new biomarker test panel. This is available to practitioners and their patients in the UK and delivers additional actionable insights into their gut health. More detailed information can be found on the new and improved CNSLab website. CNSLab is our UK lab offering food sensitivity testing on our FoodPrint test to the UK market. Once someone orders a test online, they will receive a sample collection pack through the post. All they have to do is follow a few simple steps, and they'll have their results in a matter of days. Any further follow-up questions are answered by our in-house team of nutritionists who are on hand to offer advice. That's just a brief insight into Cambridge Nutritional Sciences and the products and the services that we offer.

Speaker #2: GutDetective is a new biomarker test panel. This is available to practitioners and their patients in the UK, and delivers additional actionable insights into their gut health.

Speaker #2: More detailed information can be found on the new and improved CNS Lab website. CNS Lab is our UK lab, offering food sensitivity testing on our FoodPrint test to the UK market.

Speaker #2: Once someone orders a test online, they will receive a sample collection pack through the post, and all they have to do is follow a few simple steps, and they'll have their results in a matter of days.

Speaker #2: Any further follow-up questions are answered by our in-house team of nutritionists, who are on hand to offer advice. That's just a brief insight into Cambridge Nutritional Sciences, and the products and services that we offer.

Speaker #2: When I last spoke following the interim results, I discussed the highs and lows that we observed in H1. Many of the challenges from the first half of the year have continued to affect the business.

James Cooper: When I last spoke following the interim results, I discussed the highs and lows that we observed in H1. Many of the challenges from the first half of the year have continued to affect the business. The subsequent war in the Middle East has led to a global impact on our trading. The breakdown of sales here clearly shows which markets are more affected than others. I will run through each and give some further insights. The UK market has bucked a trend and continued to grow. The growth of 0.5% revenue in the last financial year against a backdrop of a cost of living crisis highlights the great work that our UK partners are doing in marketing and selling the test.

Speaker #2: And the subsequent war in the Middle East has led to a global impact on our trading. The breakdown of sales here clearly shows which markets are more affected than others, and I'll run through each and give some further insight.

Speaker #2: The UK market has bucked the trend and continued to grow. The growth of 0.5% revenue in the last financial year, against a backdrop of a cost-of-living crisis, highlights the great work that our UK partners are doing in marketing and selling the test.

Speaker #2: In fact, the testing volume in the CNS lab was up by 11% as we see continued growth in the direct-to-consumer channels, and these occupy a large portion of the testing volumes.

James Cooper: In fact, the testing volume in the CNSLab was up by 11%, as we see a continued growth in the direct-to-consumer channels. These occupy a large portion of the testing volumes. These are predominantly through our large business partners who receive volume discounts to encourage and enable further growth. This is why the revenue has gone up, but not at the same rate as the testing numbers. India continues to be a standout market. The team successfully onboarded a number of new partners over the course of the last financial year. This included a new partner with a focus purely on the online direct-to-consumer channel. The test has seen a rapid uptake, surprising our partner and exceeding their targets. This is not an isolated incident.

Speaker #2: These are predominantly through our large business partners, who receive volume discounts to encourage and enable growth. Revenue has gone up, but not at the same rate as the testing numbers.

Speaker #2: India continues to be a standout market, and the team's successfully onboarded a number of new partners over the course of the last financial year.

Speaker #2: This included the new partner, with a focus purely on the online direct-to-consumer channel. The test has seen a rapid uptake, surprising our partner by exceeding their targets, and this is not an isolated incident.

Speaker #2: I recently visited a number of our partners in New Delhi and Bangalore, and there is a real appetite for our test. Many feel that we are only scratching the surface, and, looking at the last financial year, we're very proud of what the team have accomplished out there.

James Cooper: I recently visited a number of our partners in New Delhi and Bangalore. There is a real appetite for our test, and many feel that we are only scratching the surface. In the last financial year, we are very proud of what the team have accomplished out there. The year-on-year decrease in Europe was driven by three markets. One was a loss of a lab by a distributor. Another switched to a single supplier for multiple tests. The third has seen a drop in Food Detective sales as customer behaviors switch from a qualitative to a quantitative lab test. Here, we are already working on strategies to capture this change in behavior through FoodPrint sales in the market. In China and the Far East, we saw a GBP 550k decrease from our China partner sales.

Speaker #2: The year-on-year decrease in Europe was driven by three markets. One was the loss of a lab by a distributor, another was a switch to a single supplier for multiple tests, and the third has seen a drop in FoodDetective sales, as customer behavior switched from a qualitative to a quantitative lab test.

Speaker #2: Here, we're already working on strategies to capture this change in behavior through FoodPrint sales in the market. In China and the Far East, we saw a $550,000 decrease from our China partner sales.

Speaker #2: However, this was partly offset by increases in South Korea and Indonesia, which grew by 200% and 205% respectively, delivering an increase of around 300,000.

James Cooper: However, this was partly offset by increases in South Korea and Indonesia, who grew by 200% and 205% respectively, delivering an increase of around GBP 300k. The Americas saw the full year effect of the loss of a key lab by our distributor. In Africa and the Middle East, we have been impacted initially by the disruption in moving product into the region, and then subsequently by the reduced demand through lack of tourism, and the knock-on effect that this has had. The number and value of these decreases is, of course, very disappointing to see. Frustratingly, a significant proportion of this remains outside the control of CNS. We are confident in the quality of our product and service, and have not received any feedback to the contrary.

Speaker #2: The Americas saw the full-year effect of the loss of a key lab by our distributor, and in Africa and the Middle East, we've been impacted initially by the disruption in moving product into the region, and then subsequently by the reduced demand through lack of tourism and the knock-on effect that this has had.

Speaker #2: The number and value of these decreases is, of course, very disappointing to see and, frustratingly, a significant proportion of this remains outside the control of CNS.

Speaker #2: We are confident in the quality of our product and service, and have not received any feedback to the contrary. The challenges that we are tackling with our partners relate to selling an out-of-pocket test during a time when people are both experiencing significant pressures on the cost of living, and those who do not have confidence in the market are so disciplined on spending anything other than on the essentials.

James Cooper: The challenges that we are tackling with our partners relate to selling an out-of-pocket test during a time when people are both experiencing significant pressures on the cost of living, and those who do not have confidence in the market, so disciplined on spending anything other than on the essentials. We are increasing our understanding of the market needs with our partners to hone in on their strategy to address these challenges and reverse the trend in some of these areas. In the interim update of November, I presented a new structure and reprioritization exercise for all those involved with sales. I am pleased to report that we have fully implemented this exercise, and in addition, have a new Global Sales Director, Erik Melgaard Pedersen. Erik has significant experience in the diagnostic space and will help us to grow existing and future customers.

Speaker #2: We are increasing our understanding of the market needs with our partners to hone in on their strategy to address these challenges and reverse the trend in some of these areas.

Speaker #2: In the interim update of November, I presented a new structure and reprioritization exercise for all those involved with Sales. I'm pleased to report that we have fully implemented this exercise, and, in addition, have a new Global Sales Director, Eric Melgar Pedersen.

Speaker #2: Eric has significant experience in the diagnostic space and will help us to grow existing and future customers. I hope to be able to introduce him to you in future presentations.

James Cooper: I hope to be able to introduce him to you in future presentations. We have also promoted a member of our internal team to the role of Head of Customer Success, and they brought an injection of energy and fresh insight into this role. The teams together have sought out customer feedback and addressed this on multiple fronts, leading to everything from foreign language webinars and lecture symposiums, through to new pricing models, and growth incentivization schemes. We look forward to seeing the results that the team deliver. Whilst a significant proportion of the board and management's time is focused on increasing the business's revenue, there are a number of other projects elsewhere that are delivering impactful results. Towards the end of the financial year, we committed to a restructure across the business to further reduce our cost base.

Speaker #2: We have also promoted a member of our internal team to the role of Head of Customer Success, and they have brought an injection of energy and fresh insight into this role.

Speaker #2: The teams together have sought out customer feedback and addressed this on multiple fronts, leading to everything from foreign language webinars and lecture symposiums, through to new pricing models and growth incentivization schemes. We look forward to seeing the results that the team deliver.

Speaker #2: While a significant proportion of the board and management's time is focused on increasing the business's revenue, there are a number of other projects elsewhere that are delivering impactful results.

Speaker #2: Towards the end of the financial year, we committed to a restructure across the business to further reduce our cost base. This was a challenging exercise and touched nearly every area of the business.

James Cooper: This was a challenging exercise and touched nearly every area of the business. The results are a significant cost saving, which is important for the business, and has led to productivity increases across many areas. I am very grateful to the hard work that the teams continue to put into the business. Yield remains a key focus for any continuous improvement efforts, and I am very proud of the team for their work increasing the yield from 52.3% to 64.7%. This is an example of continuous improvement in action as the team continue to challenge our processes and seek out new ways to deliver product. In the digital world, we have launched a new and vastly improved CNSLab website for our practitioners and customers to buy from.

Speaker #2: The results are a significant cost saving, which is important for the business and has led to productivity increases across many areas. And I'm very grateful for the hard work that the teams continue to put into the business.

Speaker #2: Yield remains a key focus for any continuous improvement efforts, and I'm very proud of the team for their work increasing the yield from 52.3% to 64.7%.

Speaker #2: This is an example of continuous improvement in action, as the team continues to challenge our processes and seek out new ways to deliver product.

Speaker #2: In the digital world, we've launched a new and vastly improved CNS Lab website for our practitioners and customers to buy from. The new site has been designed to be far more intuitive and easy to use, both for direct purchasing and for our partners to explore the wide library of material available to them.

James Cooper: The new site has been designed to be far more intuitive and easy to use, both for direct purchasing and for our partners to explore the wide library of material available to them. From a business perspective, it is also a lot easier to update and track the user experience. The CNSLab is now fully transitioned over to our new Clinisys laboratory information management system, LIMS for short. This has moved us from an on-premises bespoke homemade platform onto a fully supported cloud-based solution with the ability to connect to our partners via APIs. We are also continuing to put our customers at the center of what we do to ensure we are addressing the needs of each market as best we can. We organize regular virtual meetings, and in order to support the relationships and better understand these markets, we make the time to visit all our significant customers.

Speaker #2: From a business perspective, it's also a lot easier to update and track the user experience. The CNS lab is now fully transitioned over to our new Clinisys laboratory information management system—LIMS for short.

Speaker #2: This has moved us from an on-premises, bespoke, homemade platform onto a fully supported, cloud-based solution, with the ability to connect to our partners via APIs.

Speaker #2: We're also continuing to put our customers at the center of what we do. To ensure we are addressing the needs of each market as best we can, we organize regular virtual meetings. In order to support these relationships and better understand these markets, we make the time to visit all our significant customers.

Speaker #2: I recently had the pleasure of presenting our Practitioner of the Year Award to Martin Healey, the founder and driving force behind the Fitzwilliam Clinic in the Republic of Ireland.

James Cooper: I recently had the pleasure of presenting our Practitioner of the Year award to Martin Healy, the founder and driving force behind the Fitzwilliam Clinic in the Republic of Ireland. The discussions and conversations that took place helped develop our understanding of how the market works and better guide our efforts to support Martin. I will now pass over to AJ to run through some of the financials.

Speaker #2: The discussions and conversations that took place helped develop our understanding of how the market works and better guide our efforts to support Martin. I'll now pass over to AJ to run through some of the financials.

Speaker #1: Thank you, James. Let me also start by apologizing for the late announcement of our results from the previously intended date. As James has mentioned, this was due to some one-off reasons, and in particular, a review of our forecasts where the auditors wanted to make sure we completed an impairment of assets on our balance sheet. All of this had little or no trading impact as far as the results are concerned.

Ajay Patel: Thank you, James. Let me also start by apologizing for the later announcement of our results than previously intended. As James has mentioned, this was due to some one-off reasons, and in particular, just some review of our forecasts where the auditors wanted to make sure we completed an impairment of assets on our balance sheet, all of which had little or no trading impact as far as the results are concerned. I will mention some of these in more detail as the presentation goes on. Starting with financial highlights. The first slide shows that our financial highlights, and I will spend a little time just going through each one of these. Revenue is down 16.3%, which is disappointing, and as James has explained, arose from sales misses in most regions except the UK and India.

Speaker #1: I'll mention some of these in more detail as presentation goes on. Starting with financial highlights, the first slide shows that our financial highlights, and I'll spend a little time just going through each one of these.

Speaker #1: Revenue is down 16.3%, which is disappointing, as James has explained, and arose from sales misses in most regions except the UK and India. Many of these were one-offs—in particular, the loss of a laboratory by a distributor in the Americas and Europe, lower China sales, and also the impact of the global economic climate.

Ajay Patel: Many of these were one-offs, in particular, the loss of a laboratory by distributors in Americas and in Europe, the lower China sales, and also the impact of global economic climates. This latter reason continues into the current year, but we will work hard to mitigate the impact of this. Gross margin has improved by 2.5%, 67.8%, demonstrating the continued efficiency in production, scrap reductions, and better buying. Adjusted EBITDA produced a loss of GBP 0.4 million and arose predominantly from the lower sales as well as lower other income and a bad debt provision, which I will refer to later. Exceptional costs were GBP 3.2 million and comprised mainly of a GBP 3 million goodwill impairment, which arose from the conservative future forecast that I mentioned earlier.

Speaker #1: This latter reason continues into the current year, but we will work hard to mitigate the impact of this. Gross margin has improved by 2.5%, to 67.8%, demonstrating the continued efficiency in production, scrap reductions, and better buying.

Speaker #1: Adjusted EBITDA produced a loss of $0.4 million, and arose predominantly from the lower sales, as well as lower other income, and a bad debt provision, which I'll refer to later.

Speaker #1: Exceptional costs were 3.2 million. And comprised mainly of a 3 million goodwill impairment, which arose from the conservative future forecast that I mentioned earlier.

Speaker #1: The remaining items here were for the compensation for a loss of an employee who resigned, as well as costs of restructuring the business, which was undertaken in March 2026.

Ajay Patel: The remaining items here were for the compensation for the loss of an employee who resigned, as well as costs of restructure of the business, which was undertaken in March 2026. The result of this is that cash has fallen to GBP 2.6 million, and I will explain the causes of this reduction later. The profit and loss for the current year and the comparison to the previous year is shown on this slide. The fall in revenue previously mentioned drives much of the lower profitability. The gross profit percentage is improved as cost of sales fall by a greater percentage than the revenue fall.

Speaker #1: The result of this is that cash has fallen to £2.6 million, and I will explain the causes of this reduction later. The profit and loss for the current year and the comparison to the previous year are shown on this slide.

Speaker #1: The fall in revenue previously mentioned drives much of the lower profitability. The gross profit percentage is improved, as cost of sales fall by a greater percentage than the revenue fall.

Speaker #1: In addition, you'll see that admin costs have fallen, while sales and marketing costs increased after investing in our sales and marketing functions in the last year.

Ajay Patel: In addition, you will see that admin costs have fallen whilst sales and marketing costs increased after investing in our sales and marketing functions in the last year, and also after taking a GBP 0.53 million bad debt provision against some product which was shipped to the Americas and is taking longer to sell due to the change in policy and tariffs. The loss before tax of GBP 4.4 million is disappointing, with GBP 3 million being the goodwill impairment. The tax charge of GBP 1.4 million arises from the reversal of the deferred tax asset previously on our balance sheet, which again arises from some of the conservative forecasts undertaken. This does not impact the ability of the business to offset future taxable profits with these historic losses. This slide highlights 2 of the key important KPIs and their year-on-year movement with revenue down and gross margin improved.

Speaker #1: And also, after taking a $0.5 to $3 million bad debt provision against some product which was shipped to the Americas, and is taking longer to sell due to the changing policy and tariffs.

Speaker #1: The loss before tax of £4.4 million is disappointing, with £3 million being the goodwill impairment. The tax charge of £1.4 million arises from the reversal of the deferred tax asset previously on our balance sheet, which again arises from some of the conservative forecasts undertaken.

Speaker #1: This does not impact the ability of the business to offset future taxable profits with these historic losses. This slide highlights two of the key important KPIs and their year-on-year movement, with revenue down and gross margin improved.

Speaker #1: Adjusted EBITDA is the third important KPI for the business, and its year-on-year movement is shown by this waterfall chart. Last year, adjusted EBITDA was a profit of £405,000.

Ajay Patel: Adjusted EBITDA is the third important KPI for the business, and its year-on-year movement is shown by this waterfall chart. Last year, adjusted EBITDA was a profit of GBP 405,000. This position was improved upon by our enhanced gross margin and lower overheads, excluding the bad debt provision previously discussed. The position then falls by lower other income and lower revenue, resulting in an adjusted EBITDA of GBP 0.1 million pre-bad debts and GBP 0.4 million after bad debts. The last key KPI is cash, and this slide shows the movement in cash from GBP 4.9 million to GBP 2.6 million. Cash is lowered by the loss in adjusted EBITDA explained on the previous slide, as well as the cash impact of exceptionals with impairment, not a cash impact.

Speaker #1: This position was improved upon by an enhanced gross margin and lower overheads excluding the bad debt provision previously discussed. The position then falls by lower other income and lower revenue, resulting in an adjusted EBITDA of 0.1 million, pre-bad debts and 0.4 million, after bad debts.

Speaker #1: The last key KPI is cash, and this slide shows the movement in cash from £4.9 million to £2.6 million. Cash is lowered by the loss in adjusted EBITDA explained on the previous slide, as well as the cash impact of exceptionals, with impairment not a cash impact.

Speaker #1: The lower working capital arose from higher debtors, and some delay in payments received, as well as lower working capital arising from a smaller business in terms of creditors.

Ajay Patel: The lower working capital arose from higher debtors and some delay in payments received, as well as lower working capital arising from smaller business in terms of creditors. The capital expenditure in the year was spent on new machinery for producing our tests, a new website, as well as a new LIMS system. Lastly, the incursion of development costs on the creation of a new IVDR product. Finally, financing interest and foreign exchange lowered the cash position by GBP 0.2 million. Many of these items are one-offs, so the business is well-funded for the next few years. The five-year trends are shown on this slide, with all four KPIs showing the positions and the movements over this period. Revenue falls are disappointed, but more focus on the sales team will help to address this moving forward.

Speaker #1: The capital expenditure in the year was spent on new machinery for producing our tests, a new website, as well as a new LIMS system.

Speaker #1: And lastly, the incursion of development costs on the creation of a new IBDR product. Finally, financing interest and foreign exchange lowered the cash position by £0.2 million.

Speaker #1: Many of these items are one-offs, so the business is well funded for the next few years. The five-year trends are shown on this slide, with all four KPIs showing the positions and the movements over this period.

Speaker #1: Revenue falls are disappointing, but more focus on the sales team will help to address this moving forward. Gross margin growth is good, and the revenue improvements expected in the future will help the business move into EBITDA profitability, and as a result, the cash position should improve.

Ajay Patel: Gross margin growth is good, and the revenue improvements expected in the future will help the business move into EBITDA profitability, and as a result, the cash position should improve. Thank you. Over to you, James.

Speaker #1: Thank you. Over to you, James.

Speaker #2: Thank you, AJ. I'll now move on to the outlook for CNS.

James Cooper: Thank you, AJ. I will now move on to outlook for CNS. First, we have mentioned before that IVDR is a key focus for the company. We are very proud that our test carries a CE mark. This not only demonstrates that the test complies with a strict set of safety, quality, and performance standards, but crucially, that a European market is open to us, and labs that demand a CE mark, which is the majority, buy our test. We are currently in a transition period from IVD directive to the new IVD regulation, commonly known as IVDR. Additionally, a lot of other countries outside the EU are aligning their requirements with the IVDR requirements, and registration in these territories is quicker and cheaper if you already have IVDR approval.

Speaker #1: First, we've mentioned before that IBDR is a key focus for the company. We're very proud that our test carries a CE mark. This not only demonstrates that the test complies with a strict set of safety, quality, and performance standards, but crucially, that the European market is open to us, and labs that demand a CE mark — which is the majority — buy our test.

Speaker #1: We are currently in a transition period from IBD directive to new IBD regulation. Commonly known as IBDR. Additionally, a lot of other countries outside the EU are aligning their requirements with the IBDR requirements.

Speaker #1: And registration in these territories is quicker and cheaper if you already have IBDR approval. For our class of product, we move from being self-certified to requiring a full audit of our technical file and approval of our product by an independent regulatory body.

James Cooper: For our class of product, we move from being self-certified to requiring a full audit of our technical file and approval of our product by an independent regulatory body. Our class of product must achieve this approval by the end of 2029 in order to retain its CE mark. Without approval, we would have to stop selling in the EU and a lot of other markets. That is why the IVDR product has been a core focus for the development team over the last 18 months. I am pleased to update you on our progress. During the transition period, which started in May 2022, we were unable to make any significant changes to the product. We are therefore taking this opportunity to make a number of changes and improvements based on customer feedback. One key change of the product is a substantial increase in number of foods.

Speaker #1: Our class of product must achieve this approval by the end of 2029 in order to retain its CE mark. Without approval, we would have to stop selling in the EU and a lot of other markets.

Speaker #1: That is why the IBDR product has been a core focus for the development team over the last 18 months, and I'm pleased to update you on our progress.

Speaker #1: During the transition period, which started in May 2022, we were unable to make any significant changes to the product. We're therefore taking this opportunity to make a number of changes and improvements based on customer feedback.

Speaker #1: One key change for the product is a substantial increase in the number of foods. We are aiming to increase this from 222 to 290 foods, and this will give us better coverage and more insight to our customers, and we believe will make us one of the most comprehensive food IGG tests on the market.

James Cooper: We are aiming to increase this from 222 to 290 foods, and this will give us better coverage and more insight to our customers, and we believe will make us one of the most comprehensive food IgG tests on the market. Another significant change is the way in which we manufacture the product. We will move from our old and unsupported Microplex to new, fully supported contactless printers. The company invested in these during the course of the last financial year, and the development team have been working with them to create the updated product. These should not only be more reliable than the old equipment, but also deliver an increase in capacity and yield. Whilst the deadline for transition is the end of 2029, our goal is to be significantly ahead of that, and we remain on track to submit to our notified body by the end of 2026.

Speaker #1: Another significant change is the way in which we manufacture the product. We will move from our old and unsupported microgrids to new, fully supported contactless printers.

Speaker #1: The company invested in these during the course of the last financial year, and the development team have been working with them to create the updated product.

Speaker #1: These should not only be more reliable than the old equipment but also deliver an increase in capacity and yield. While the deadline for transition is the end of 2029, our goal is to be significantly ahead of that, and we remain on track to submit to our notified body by the end of 2026.

Speaker #1: Once the product has been submitted, the notified body go through a detailed review process. We're working hard to ensure that our file will be in the best condition for submission to minimize any queries or questions that may delay certification.

James Cooper: Once the product has been submitted, the notified body go through a detailed review process. We are working hard to ensure that our file will be in the best condition for submission to minimize any queries or questions that may delay certification. We will give further updates through these meetings when we have firm information. There are a number of reasons for pushing to gain IVDR approval ahead of the deadline, not least that we expect notified bodies to become very busy, but also because we believe it will give us a commercial edge. By increasing the number of foods and demonstrating that we are going to be in the market beyond 2029, we believe that we are giving a strong signal to current and future customers that we are the right partner for them.

Speaker #1: We'll give further updates through these meetings when we have firm information. There are a number of reasons for pushing to gain IBDR approval ahead of the deadline.

Speaker #1: Not least that we expect notified bodies to become very busy, but also because we believe it will give us a commercial edge. By increasing the number of foods and demonstrating that we are going to be in the market beyond 2029, we believe that we are giving a strong signal to current and future customers that we are the right partner for them.

Speaker #1: Finally, if we look to the future, we know that in the short term, the pressures we faced at the end of the last financial year continue unabated.

James Cooper: Finally, if we look to the future, we know that in the short term, the pressures we face at the end of the last financial year continue unabated.

Speaker #1: As the war in the Middle East impacts the cost of living, it is felt by everyone from end users right up to distributors.

James Cooper: As the war in the Middle East impacts on the cost of living and buying decisions of everyone from end users right up to distributors. While we expect to see growth in the UK and India, we are taking a more conservative approach in other markets. The hard work of the team and the restructuring that took place in March means that we expect to maintain our growth margin this year. This is also against the backdrop of significant cost pressures, both from material and the fixed cost nature of our manufacturing resources. We continue to look for opportunities to improve our efficiency and reduce our costs. Our investment into the critical IVDR project will continue until we receive approval, and we anticipate that the cash is sufficient to fund this and the business moving forwards.

Speaker #1: Whilst we expect to see growth in the UK and India, we're taking a more conservative approach in other markets. The hard work of the team and the restructuring that took place in March mean that we expect to maintain our gross margin this year.

Speaker #1: This is also against the backdrop of significant cost pressures both from material and the fixed cost nature of our manufacturing resources. We continue to look for opportunities to improve our efficiency and reduce our costs.

Speaker #1: Our investment into the critical IBDR project will continue until we receive approval, and we anticipate that the cash is sufficient to fund this and the business moving forward.

Speaker #1: Thank you for all the time this afternoon, and I hope that this presentation has given you further insight into who we are as a company that challenges and the opportunities that we face.

James Cooper: Thank you for all the time this afternoon, and I hope that this presentation has given you further insight into who we are as a company, the challenges and the opportunities that we face, as well as our approach to overcoming these and delivering success for the business going forward. As a board, we continue to believe that there is huge potential for the product and company and look forward to updating you in the future. If you have not already, please sign up to our investor alerts that are on our website or email us at the address shown on the next screen. We will now answer some of the questions that have been submitted. Any that we do not cover now, we will aim to address through the Investor Meet Company platform.

Speaker #1: As well as our approach to overcoming these and delivering success for the business going forward. As a Board, we continue to believe that there is huge potential for the product and company, and we look forward to updating you in the future.

Speaker #1: If you've not already, please sign up to our investor alerts that are on our website, or email us at the address shown on the next screen.

Speaker #1: We will now answer some of the questions that have been submitted. Any that we do not cover now, we'll aim to address through the IMC platform.

Operator: That is great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the top right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I would like to remind you that recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your invest dashboard. As you can see, we have received a number of questions throughout today's presentation. So please I ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end.

Speaker #2: That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right-hand corner of your screen.

Speaker #2: While the company takes a few moments to review the questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard.

Speaker #2: As you can see, we have received a number of questions throughout today's presentation. So, please could I ask you to read out the questions and give responses where appropriate to do so? I'll pick up from you at the end.

Speaker #1: Thank you very much. So, the first question is regarding the change in market value of the company over the last couple of years.

James Cooper: Thank you very much. The first question is regarding the change in market value of the company over the last couple of years. As you may well be aware, we are currently operating in quite a difficult investment market in the UK at the moment. We are committed to building new products made in a new way, and we are confident that the market will reflect that in the value of this company in the future. Next is a question about when can shareholders expect to see some actual revenue delivery. As I discussed in the presentation, we anticipate that the new product will be ready in 2027. And we really do expect this to be one of, if not the best product in the market.

Speaker #1: As you may well be aware, we currently operate in quite a difficult investment market in the UK at the moment. We committed to building new products made in a new way, and we're confident that the market will reflect that in the value of this company in the future.

Speaker #1: Next, there's a question about when shareholders can expect to see some actual revenue delivery. As I discussed in the presentation, we anticipate that the new product will be ready in 2027.

Speaker #1: And we really do expect this to be one of, if not the best, products in the market. We've invested significantly in this product because we believe we're going to be able to knock out some of the competition and capture new markets, both of which are going to deliver that revenue growth.

James Cooper: We have invested significantly in this product because we believe we are going to be able to knock out some of the competition and capture new markets, both of which are going to deliver that revenue growth. We now have a question asking about how many shares we as a board hold in the business. The board holds a combined value of approximately 0.86%. This is very much in line with the average holding for a non-founder-led AIM business, and we do expect the board will likely accumulate further shares in the future. We have a question here regarding the news flow and market communications. The majority of our news flow is aimed at the market we currently serve. We distribute that via email, LinkedIn, Facebook, and other platforms.

Speaker #1: We know the question is asking about how many shares we, as a board, hold in the business. The board holds a combined value of approximately 0.86%.

Speaker #1: This is very much in line with the average holding for a non-founder-led AIM business, and we do expect the board will likely accumulate further shares in the future.

Speaker #1: We had a question here regarding the newsflow, market, and new communications. So, the majority of our newsflow is aimed at the market we currently serve.

Speaker #1: So we distribute that via email, LinkedIn, Facebook, and other platforms. So I really encourage you to follow us on those platforms, and we will be able to keep you up to date in that form.

James Cooper: I really encourage you to follow us on those platforms, and we will be able to keep you up to date in that form. But we also appreciate the market would like more information in the future, and we will aim to increase the number of RNS reaches accordingly with that. Another question here about contact details for myself. The email address on screen at the moment, investors@cnsplc.com. That is the best way to get hold of me. Anything that goes into that will reach me. I monitor that, and then following that, I will also be very happy to arrange separate calls. Okay. One of the other questions was about our cash position. And as we have reiterated in the presentation and also discussed in terms of in the forecast, we anticipate to have cash of about GBP 1.6 million at the end of the year.

Speaker #1: But we also appreciate the market. We would like more information in the future, and we will aim to increase the number of RNS releases accordingly with that.

Speaker #1: Another question here about contact details for myself. So, the email address on screen at the moment—investors@cnsplc.com—that is the best way to get hold of me.

Speaker #1: Anything that goes into that will reach me. I'm onto that. And then, following that, I'll also be very happy to arrange a separate course.

Speaker #3: Okay. One of the other questions was about our cash position. And as we have reiterated in the presentation and also discussed with in terms of in the forecast, we anticipate to have cash of about 1.6 million at the end of the year.

Speaker #3: And we think that's plenty especially with the lower cost base to keep the business going.

James Cooper: And we think that is plenty, especially with a lower cost base to keep the business going. Somebody had asked, what are the key differences between the current and the new product? Well, as I mentioned on the IVDR slide in that presentation, the new product will have an increased number of foods, quite a significant increase from the old one, and we believe it puts us ahead of the market. It will also increase the number of sample types that the product can take, making it more applicable in more markets. We expect to have a submission by the end of the year, and it will be our goal that we start to sell this actively in the next calendar year. Another question was regarding what measures are we taking to control costs going forwards.

Speaker #1: Some people have asked, what are the key differences between the current and new product? Well, as I mentioned on the IBDR side in that presentation, the new product will have an increased number of foods—a quite significant increase over the old one—and we believe it puts us at the head of the market.

Speaker #1: It will also increase the number of sample types that the product can take, making it more applicable in more markets. We expect to have a submission by the end of the year, and we'll be at goal that we start to sell this actively in the next calendar year.

Speaker #1: Another question was regarding what measures we are taking to control costs going forward. Again, as we mentioned, we completed a restructure in March of this year and anticipate that should deliver at least a £700,000 saving in this current financial year.

James Cooper: Again, as we mentioned, we completed a restructure in March of this year and anticipate that that should deliver at least a GBP 700K saving in this current financial year. Of course, we continue to look for any further efficiencies across the business. A question here about audit timelines and a delay. We already mentioned the reasons for this delay in the presentation, so I will not elaborate any further on that here. Another question about the premium pricing and the impact of FoodPrint sales and gross margin as a percentage of overall sales. Yes, this does have an impact on the gross margin. However, a lot of the improvement that we have seen in the gross margin has been driven by tangible improvements in production.

Speaker #1: And of course, we continue to look for any further efficiencies across the business. There's a question here about audit timelines and the delay. We already mentioned the reasons for this delay in the presentation, so I won't elaborate any further on that here.

Speaker #1: Another question about the premium pricing and the impact of foodprint sales and gross margin as a percentage of overall sales. So yes, this does have an impact on the gross margin.

Speaker #1: However, a lot of the improvement that we've seen in the gross margin has been driven by a tangible improvement in production. And it's also worth mentioning that we expect the new production process that we've developed for the IBDR product to produce product at an even lower cost going forwards.

James Cooper: It is also worth mentioning that we expect the new production process that we have developed for the IVDR product to produce product at an even lower cost going forwards.

Speaker #3: One of the other questions is around thought leadership and who speaks at conferences, specifically on our products. We're proud to say that Dr. Nigel Abrams and Anna Pugh, who are both very eminent within the business, fulfill that function for us.

Ajay Patel: One of the questions is around thought leadership and who speaks at conferences, specifically on our products. We are proud to say that Dr. Nigel Abraham and Anna Pugh, who are both very eminent within the business, fulfill that function for us.

Speaker #1: And we have a question here about whether microbiome technology forms a part of our strategy. We're always looking for complementary tests or things that can be additive, whether that be for the export market or for the UK market through our CNS lab.

James Cooper: We have a question here about does microbiome technology form a part of our strategy? We are always looking for complementary tests or things that can be added to, whether that be for the export market or for the UK market through our CNSLab. Anything, any changes or anything we find there, we will of course inform you lot once anything happens.

Speaker #1: And anything, any changes or anything we find there, we'll of course inform you all of once anything happens.

Ajay Patel: There's a question asking about our six-month sales performance. We are in a position where for the H1 results, we'll give that information. It's only a few weeks away, so we will update you at that point.

Speaker #3: There's a question asking about our six-month sales performance. We are in a position where, for the half-year results, we'll give that information—that's only a few weeks away.

Speaker #3: So, we will update you at that point.

Speaker #1: And finally, there's a question here about the value proposition which CNS brings to the markets. Does it improve the productivity of nutritionists? Well, we like to think so.

James Cooper: The final question here about the value proposition which CNS brings to the markets. Does it improve the productivity of nutritionists? Well, we like to think so. Yes. What we aim to bring to those nutritionists is a data-driven approach. So it both improves the productivity of nutritionists, but it also improves the effectiveness of the care and advice that they can provide to their clients, because it prevents them from having to run a laborious, long-winded elimination diet of trying this and that and slowly reintroducing things until you find the problem item, rather than take a much more targeted approach. So whilst, yes, it increased the productivity of nutritionists, but also improved the effectiveness of them. Excellent. I think that's everything for now then. Thank you all for your time this afternoon.

Speaker #1: Yes, what we aim to bring to those nutritionists is a data-driven approach. So it both improves the productivity of nutritionists, but it also improves the effectiveness of the care and advice that they can provide to their clients.

Speaker #1: Because it prevents them from having to run a laborious, long-winded elimination diet of trying this and that, and slowly reintroducing things until you find the problem item.

Speaker #1: Rather than take a much more targeted approach. So whilst, yes, it increases the productivity of nutritionists, but also improves the effectiveness of them. Excellent.

Speaker #1: I think that's everything for now then. So, thank you all for your time this afternoon. I hope that the presentation and this Q&A have given you a bit of further insight into CNS.

James Cooper: I hope that the presentation and this Q&A has given you a bit of further insight into CNS, both with our ambitions for the company and our strategies to achieve them. Both myself, AJ, and the rest of the board remain energized, excited about the potential in the market for our product, for the new IVDR product, and what this could mean for CNS going forwards. We look forward to updating you on further developments in the future.

Speaker #1: Both with our ambitions for the company and our strategies to achieve them. Both myself, AJ, and the rest of the board remain energized, excited about the potential in the market for our product, for the new IBDR product, and what this could mean for CNS going forwards.

Speaker #1: And we look forward to updating you on further developments in the future.

Speaker #2: That's great. Thank you for updating investors today. Can I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback, so that the management team can better understand your views and expectations.

Operator: That's great. Thank you for updating investors today. Can I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.

Speaker #2: This will only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

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Q4 2026 Cambridge Nutritional Sciences PLC Earnings Call

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Cambridge Nutritional Sciences

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