Operator: Thank you. Good morning, and welcome to the Abingdon Health PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to Executive Chairman, Chris Hand. Good morning to you.
Chris Hand: Good morning. Thank you, Alex, and good morning, everyone. Thank you for joining the presentation of Abingdon Health's Financial Year 2026 results for the year ended 30 June. I am Chris Hand, Executive Chairman, and I am joined by Tom Hayes, CFO.
Tom Hayes: Hi there.
Chris Hand: We have a disclaimer, which will move through to the next slide. As I say, I am Chris Hand. I am one of the Founders of Abingdon Health, which we started in 2008. I am Executive Chairman, a role I have held for the past 18 months or so, and I have been previously non-Exec Chairman of the company. My co-founder, Chris Yates, is currently CCO and has moved to looking after our USA operations. In terms of my background, it is 30 years in the medical diagnostics industry. I founded a company called Cozart PLC, which is also on AIM, which specialized in rapid diagnostic tests similar to those we now manufacture at Abingdon Health. That company was sold to Concateno PLC in 2007 and is now part of Abbott. My background is the development and commercialization of rapid diagnostic and other in vitro diagnostic tests.
Tom Hayes: Okay. Thanks, Chris. Tom Hayes, I am the CFO of Abingdon Health. My background is chartered accountancy. I have worked across a range of industry in corporate finance roles. Previously, I was finance director at another AIM-listed group of companies, and I joined Abingdon in January 2025.
Chris Hand: The agenda for the presentation today. We will give a brief overview of who we are as Abingdon Health Group and financial year 2026 at a glance. Tom will run through the financial review, and then hand back to me for our near and medium term. Then, obviously, we are happy to answer any questions that you may have. Please just submit those as we go. In terms of who we are, Abingdon Health is an end-to-end partner for the development through to manufacture, regulatory approval, and delivery of rapid diagnostic tests. That has been our background. Increasingly, since acquisitions we made two years ago, that full-service offering extends to other areas of med tech via the med tech regulatory and quality consultancy firms we bought two years ago, those being CS Life Sciences and IVDeology.
Chris Hand: And those two companies are now increasingly incorporated into our full-service offering for our customers. We operate from three sites. Headquarters are in York at the Biotech Campus, where we do all the activities, from design for development through to manufacture, regulatory, and delivery. We have two other sites. The site we have in Doncaster, south of York, is Abingdon Analytical, which operates an independent performance evaluation service and acts really as a bridge between product development and regulatory approval. That facility, we have invested in further over the past year, and we will explain as we go through what we are doing at Abingdon Analytical. Then the third site is important for us, the Abingdon Health USA facilities, which are on the University Research Park in Madison, Wisconsin.
Chris Hand: Again, we will tell you more about how we are expanding that site as we move through the presentation. In terms of financial year 2026, this slide gives an overview, at a glance. Our revenue is up 30% over the previous year, to GBP 11 million, up from GBP 8.4 million in financial year 2025. Both years had additional income from grant funding, and that relates to the project we are running with the Institut Pasteur and others to develop tests for malaria. So there was an additional GBP 0.3 million in the year just we are presenting today, versus GBP 0.2 million in 2025. Our gross margin has increased to 47.1% from 44%, driven largely by how the revenue is mixed. It was a milestone H2 of the year for us in that we achieved an adjusted EBITDA profit of GBP 0.2 million.
Chris Hand: That was a big milestone for us, and it illustrates that our business model is coming through and working, and that our infrastructure is in place to create that type of movement. Cash at the end of the financial year was at GBP 2.9 million 2025. So at a glance, it was a good year for us. Moving towards that H2 profit was an important point for us. At this point, I will hand over to Tom Hayes, who will run through the financial review.
Tom Hayes: Thank you, Chris. Okay, so this slide just gives a bit more detail on the numbers Chris has just run through. Really, as per the summary we have just covered, the key numbers on here for us are the revenue, where we have had 30% reported revenue growth, up to GBP 11 million or GBP 11.3 million, including some grant-funded projects income, which we have to show on another income line. The second key number is the gross margin, where we have got an improved margin year-on-year. Then the third one is the adjusted EBITDA line, where we have seen some operating leverage come through in line with higher revenues. The GBP 1.5 million loss for the year overall.
Tom Hayes: But there was significant weighting towards H2 on the back of higher revenues, where we did make a small adjusted EBITDA profit in the half, which was a great milestone for us. Okay. Just moving on to the next slide. We have a breakdown of revenue just by segment. These are the different activities we do within the business. This is really showing that most of the growth is driven by contract development revenues, which is on back of the number of significant programs we have announced over the past 12, 18 months. There is some modest growth on the regulatory services side as well. Contract manufacturing was relatively flat year-on-year, but we would expect over time that should step up as some of these bigger development programs progress through regulatory approvals and into manufacture. Then finally, just products we have split out separately.
Tom Hayes: That is a mixture of some white label products that we make and also the Abingdon Simply Test products where we have noted in these results that we will carry on doing those as a B2B product, but we are stepping back from the B2C sales through our website, which was quite a small number for us. It is not really part of the key strategy moving forward. This slide is quite key just in explaining how last year played out. We have significant weighting of revenue towards H2 in FY2026. The reason for that, H1, the challenge for us was really securing and starting some of the bigger programs that we have been announcing. H2 was very much full steam ahead with significantly higher revenues as a whole, particularly on the contract development side. That has fed into the adjusted EBITDA profits in H2.
Tom Hayes: The reason for that is that a lot of the cost base is fairly fixed, in terms of the people we have in the business, the premises that we have in the UK and in the USA. Really having delivered the higher revenues in H2, that is how we have got to the overall profitability. This slide is just kind of zooming out a bit and giving more of a view on the four or five-year view. It is showing that the reason we have started with FY2022 is that is the first year where we are taking out some COVID revenues, where the business was being kind of rebuilt around broader contract development and regulatory manufacturing piece. It is showing that on that four or five-year view, we have had significant revenue growth. We have compound revenue growth of 41% from 2023 through to 2026.
Tom Hayes: The contract development revenues is a significant part of the revenue growth over those years, and that is all organic growth. We did also acquire the two regulatory consultancy businesses, CS Life Sciences and IVDeology in FY2024 or just early in FY2025, which is why it is part of the regulatory growth. Overall, we have significant compound growth over this period. This final slide is just a bit more detail on the cash movement between June 2025 and June 2026. It is just showing that obviously, we did the last fundraise we did in October of 2025, which was for both the expansion of our US facilities and also for working capital. We have that cash coming in.
Tom Hayes: We have an operating cash outflow of GBP 1.6 million, which is not dissimilar to the adjusted EBITDA loss for the period. But again, the split of that is quite similar to the adjusted EBITDA line in that most of that outflow was in H1. There was a modest outflow in H2. Really showing that cash and EBITDA moved fairly similarly, and at the end of June, we had $2.9 million of cash in the bank.
Chris Hand: Thank you, Tom. The next section I will cover on our operations and give some insight into some of the contracts we are actively working on, the increased capability we have created, and some of the expansions we are doing in the US, but also in the UK at our York site and Abingdon Analytical. As far as contracts are concerned, we have spoken previously about our full service offering now allowing us to gain larger contracts, which give us greater visibility of revenue over longer periods of time. Inevitably, some of these will move and be replaced by others. But for us, as managing the company, it gives us a lot of insight as to what we need to continue to operate, as I say, over a longer time period and have a greater visibility of that revenue. Some examples we have put on here.
Chris Hand: 4TEEN4 is a German biotech pharmaceutical company that we work with. They are happy for us to name them as a partner. We have been doing a lot of work with them, developing a quantitative lateral flow test, which is acting as a companion diagnostic for their therapy. The therapy being to help cardiac shock and other types of shocks. The diagnostic test is being developed alongside the pharmaceutical to ensure that companion diagnostics is ready at the same time as the pharmaceutical. Other programs of a similar size you can see illustrated on this slide. The $2.5 million clinical self-test program is well underway, and that is being project managed with technical support from Abingdon, including some technical work being done at our York site. At the top right, the USA multiplex test system.
Chris Hand: We will unfortunately have to talk quite vaguely about some of these contracts and that the customer has confidentiality agreements with us. But this is just an example of a similar size contract being signed end of last year, but this time to be run out of our USA Madison laboratories. That, similarly, from a technology point of view, moves things from a simple yes/no to a semi-quantitative multiplex system. In other words, measuring many analytes at the same time. That program will move through financial year 2027. There is a series of contracts, bottom left, which we announced earlier in the year. Some of those are going through and completed. Others are being reviewed by the customer. Some may continue, some may not.
Chris Hand: But I think importantly, because of this visibility we have with contracts, the way we forecast things, we basically only forecast contracts if we are sure they are progressing. As I said earlier, as we move through working with different customers, some programs will continue, some will fade away. But importantly, we have good visibility of the whole due to this larger service offering. An interesting one in the bottom middle there is a product we have developed with a company called UpFront Diagnostics. The product is called LVOne, and it is a test for triaging stroke.
Chris Hand: It is currently being piloted across the London Ambulance Service, and the idea of the test is to triage whether the patient has suffered a large vessel occlusion, which is the worst sort of stroke, which requires different treatment, and potentially to be directed to a different health center than a different sort of stroke. That is a really interesting product that is coming through, as I say, being trialed in the London Ambulance Service and is UKCA marked. The idea of this slide is to illustrate, hopefully, to you how the integrated full service offering that we now give to our customers is allowing us to gain these larger contracts and take things from feasibility right through to manufacture and sale.
Chris Hand: In terms of the capability, two key areas of growth for us, which were helped by the fundraising last autumn, are Abingdon Analytical, which is our Doncaster performance evaluation laboratory. That opened December 2024, so less than two years ago. It generates performance data that bridges between product development and regulatory approval. We are also offering a CRO service from that site now. As some of these products come through and require clinical testing, we are managing that from the Doncaster site. Importantly, we gained our first UKAS accreditation to a standard known as ISO 17025, which is the laboratory testing standard, which illustrates that the highest level of laboratory work is being performed from the Abingdon Analytical site, which obviously gives our customer confidence that the results coming from that lab are of a high quality.
Chris Hand: That is an area we have put effort into expanding, and we have a lot of activity going on in the Doncaster lab. Then similarly with Madison, Wisconsin, where we have Abingdon Health USA, which we established. We have now added manufacturing to that site from now, basically. The opening happened very recently, end of September, and we will be adding the appropriate quality standards to that site. Basically, our customers can have products developed and manufactured in both the UK or the USA, both to the same quality system and the same standard of work. Madison, as I say, has just been expanded to add a manufacturing hub. We did that from the pull from our customer base, so we continue to expand and have most of our activity from York.
Chris Hand: But Madison is an important site for us now as we are gaining an increasing number of US-based customers who want both the development work and now increasingly the manufacturing work to be done from the USA. This began before the advent of President Trump, but we are finding increasingly if a customer is operating by US grant funding, then that funding needs to be used in the USA. They want USA manufacturing made in the USA, which we can now offer from our Madison site, which is on the University Research Park in Madison. Wisconsin's a very strong health tech state. They've been very supportive of us and to the extent that we've been certified for state support for up to $370,000 based around recruitment of people in that site. As I said previously, we're adding the appropriate accreditations to the site.
Chris Hand: Because of the interest we've gained, certainly in Madison and the wider Wisconsin community and beyond that, we've allowed our AIM-listed shares to be traded on the OTCQB in New York. That's something we started earlier this year. It's a very low-cost way of letting our shares be more widely traded in the USA. Our strategy going forward, this year and beyond, we're consolidating our activities into three pillars to give a more coherent offering to our customer base and indeed to investors. We've divided things into three pillars, which you can see illustrated on this slide with Abingdon Diagnostics being the original core lateral flow development and manufacturing element of our offering. It also includes new technologies which we can add our development skills to, which are very similar to the lateral flow skills such as biosensors and other new IVD methods.
Chris Hand: AI and Software as a Medical Device is something we've been offering as a consultancy via the companies we acquired a couple of years ago. We're finding a lot more incoming interest to add this consultancy service alongside our product development and other med tech consultancy. You can see AI and SaMD featured in both Abingdon Diagnostics and Abingdon AI and Med Tech, which is the third pillar here. That's basically the same people operating across those three pillars. The Abingdon AI and Med Tech is the core of our med tech consultancy, which goes beyond in vitro diagnostics. Abingdon Analytical in the center there, bridges between the two actually, and it also allows performance evaluation and things like bioburden testing, which apply to other medical devices in addition to in vitro diagnostics.
Chris Hand: The CRO, clinical research offering is complementary to the test house and performance evaluation offering as we're bringing products through from development to testing and regulatory approval. We're now also offering that clinical activity too. Importantly, we're promoting this as a one-stop shop, if you like. One Abingdon, an integrated consultancy across all these three pillars. Those three pillars are backed by these six priorities in terms of our strategy. Our people are very important to us. We develop our people, and the culture and their capability is important as we continue to grow, that our people grow with the company. We need to grow efficiently, so we need to be constantly managing our costs and as we scale up, which is a key feature of our activities.
Chris Hand: As I've just mentioned, our outside world faces as one group and a clear identity as an in vitro diagnostic and med tech consultancy. AI and Software as a Medical Device is very important and increasingly so. It crosses all that we do. We are getting an increasing number of interest and incoming inquiries about our ability to help incorporate AI and Software as a Medical Device into our current offering. As I said, we have already got skilled people in that field within the company. The new tech services again, leverages what we have in place. If we can develop and manufacture lateral flow tests, there is an easy pivot towards other similar rapid diagnostic tests such as biosensors and microfluidics, which we have experience in the company doing.
Chris Hand: The key across all of this is to grow our revenue and profits in the UK and the US, and obviously applying that globally, but from our two bases in the UK and the USA. For the outlook, as we said earlier, the contracts we have announced during the calendar year provide visibility to us to allow us to manage the company efficiently, giving us a solid base on which to build. We have got a very good pipeline of work coming through. Q1 revenue was lower than we anticipated due to some delays in programs. Nothing that has gone away, but things such as specialty reagents not being available from a customer, for example.
Chris Hand: Another example which could create a delay in revenue may be the customer altering the specification when we get to a certain milestone, which would mean, for example, adding additional work, but it slows down the full program. Nothing that has gone away but can potentially slow revenue, and therefore make our H2 more heavily weighted than H1. Financial year 2027 revenue and adjusted EBITDA will be therefore moved towards the second half. I mentioned the integration of our regulatory and quality med tech consultancy offering. As part of that restructuring, we will be moving towards that integrated offering to a higher value IVD and med tech and AI work, which the reintegration will cause some short-term revenue impact, but a smaller impact on EBITDA, and we would expect that to pick back up pretty quickly.
Chris Hand: But for now, we have lowered the revenue from that element of our activities. The board expects an improved EBITDA position for 2027 versus Our priority is delivery of existing programs and converting our strong pipeline on that existing infrastructure base. To summarize, we had good growth in the year of 32%, if we include the grant income from both years 2025 and 2026, or 30% if we do not. It was our H1 of adjusted EBITDA profit, so that was an important milestone for us. Our multi-year contracts that we are obtaining now based upon the full service offering that we provide are allowing larger multi-year programs to allow us to have this greater visibility of activities. Our capability is where we want it to be, both in the UK and the US, from a development, manufacturing, and regulatory performance evaluation, the whole process.
Chris Hand: Adding the UKAS-accredited laboratory is important. In terms of numbers, we expect the revenue to continue to increase, and we expect EBITDA performance to improve over last year into this. At that point, I just have one more slide to those who have not seen this already. We are offering an open day on 21 October at our York Biotech Campus facilities. There are still places if those listening would like to attend. We'll be introducing members of the team, doing a tour of our facilities, and looking at some of the products we make. If anyone's interested in attending that, please do register because we need names of people. You can see the place to register your interest there at abingdon@walbrookpr.com. Please do that. We look forward to seeing those of you that can make it in York.
Operator: That's great. Thank you very much indeed for your presentation. I will now turn on your cameras for the Q&A session. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated in the top right corner of your screen. While the company takes a few moments to review those questions submitted today, I would 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 Investor Dashboard. Alice, at this point, if I may, I will hand back to you to take us through the Q&A session, and I'll pick up at the end. Thank you.
Alice Woodings: Thank you, Alex. We've had a couple of questions submitted online. I'll start with the first few from Ben. With the development revenues increasing, what's the time frame for this to transition into meaningful manufacturing revenue?
Chris Hand: Yeah. We've got a lot of programs which are moving. The way that the development moves through to manufacturing, there are various stages to that. For example, once a product has finished being optimized, it moves through to what we call technical transfer, where we manufacture three batches of the product at increasing sizes. Then the customer alongside us, if that's how we're working, will do the performance evaluation and clinical testing of those products, and that can take several months to do. We would expect an increasing number of those products to come through to manufacturing this year.
Chris Hand: But obviously they'll start at a lower level, and then that will pick up as they gain traction with their own commercial activities. It's a key thing for us to do. We've got a couple of programs moving through in the same way in the US as we do in the UK. So, it's a question of getting things through the regulatory approval process as well as just completing the development.
Alice Woodings: Thanks, Chris. The next question from Ben. "What revenue contribution do you see from the expanded US facility in the coming months, and what does the profile look like further out?
Chris Hand: Okay. Yeah. Do you want to take that one, Tom?
Tom Hayes: Yeah, sure. It's a big growth area for us in the USA. We don't publicly split out the revenue by that business unit. But essentially they were up and running in early 2025. Last month just kind of officially opened the manufacturing side of things. So, I think, without giving exact numbers, our expectation is they're into the sort of millions rather than hundreds of thousands of revenue. And we'd like to see that step up significantly in the future.
Alice Woodings: Great. Thank you, Tom. We have had a couple of questions about the significant growth forecast for 2027. Martin H says, "Given the improvement in financial performance in H2 2026, I was slightly disappointed by the 2027 outlook. What level of sales is required to become profitable?
Tom Hayes: Okay. I will make a start on both of those, Chris—
Chris Hand: Yeah.
Tom Hayes: —then jump in if you want. I think in the conclusion, in the results, I suppose. Cavendish have published updated forecasts this morning. Obviously, it is up to them what numbers they forecast. We are comfortable saying we think we are on for significant growth this year. Although, as Chris has said, that will be weighted more towards H2 in terms of revenues, just given we have had a couple of delays in H1. Just picking up Martin's question around the outlook. Again, Cavendish have their numbers out there.
Tom Hayes: Just H2 2026, the numbers I have got reported revenue of GBP 6.8 million, not including the grant-funded income, and that was an adjusted EBITDA profit of GBP 0.2 million. So that is probably not a bad starting point. Although just the caveat being obviously the cost base will evolve as the business grows. I cannot really give a kind of revenue or profit forecast for on a revenue of GBP 13.7 is forecasting the adjusted EBITDA—
Chris Hand: Yeah.
Tom Hayes: —of 0.2. We are not far from that position. What we have done, as I mentioned earlier in the presentation, is we have taken a view as we integrate our regulatory services, that the revenue may take a dip in that particular area while we restructure things, but we would expect that to come back. I think if we look at the Cavendish note and the GBP 13.7 or thereabout takes us to that profitable position.
Chris Hand: Yeah.
Tom Hayes: It sort of matches with what we said in H2 2026.
Chris Hand: I think so. Also just to note that we obviously are managing costs as carefully as we can to align with revenue. The profitability is still very much on a key part of our agenda.
Alice Woodings: Thank you. Just a reminder, for those who are not aware, the Cavendish notes are available through the Cavendish website or Research Tree. Anybody can register to receive those. Chris, do you want to wrap up with a few closing comments?
Chris Hand: Yeah. Thanks, Alice, and thanks for the questions. We are very pleased with our progress. The financial year 2026 was a good one for us, and we expect us to continue to grow as we go forward. We have got the full service offering now. We are attracting some prestigious customers, from pharmaceutical and large biotech through to the smaller startups. By integrating everything together, having the three pillars that we present to our customers, we think we are well positioned for increased growth both in the UK and the US. Yeah. Thanks again for taking time to listen to the presentation and hopefully we will see some of you in York.
Operator: Fantastic. Thank you very much indeed for updating investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback which will help the company better understand
