Medical device firm Circassia reports revenue rise

Circassia, the Oxford-based medical device company which develops devices to diagnose and manage asthma, has announced its unaudited financial figures for the six months ended 30 June.

During this period, the firm made unaudited revenues of approximately £15.5 million, which is 6 per cent more than the same period last year. Once non-recurring loses and gains are deducted this leaves an underlying revenue of 11 per cent.

Underlying earnings are distinct from statutory earnings, which businesses are required to submit by law. They represent the earnings a company has made once non-recurring costs and one-off losses and gains are removed, giving a more accurate depiction of year-on-year financial strength.

Despite the impact of China’s Covid lockdowns, Circassia’s underlying clinical earnings have grown 12 per cent, to an approximate £13 million. This is compared to H1 2021’s £11.6 million, excluding a one-off revenue item of £600,000.

Meanwhile, research revenues, which were up against a strong H1 performance in 2021, were ahead by 4 per cent to £2.5 million.

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Part of the reason for these increases may be down to a change in business model. The firm claims its distributer-led sales strategy has led to a reduction in overheads from £10 million in H1 2021 to around £7.8 million.

Another contributing factor is the recent FDA-approval of Beyond Air's LungFit, for which the company is due to receive payments of $10.5 million (~£8.5 million) over the next three years along with up to a further $6 million (~£4.8 million) in royalty payments.

Ian Johnson, Circassia's Executive Chairman, said: "I am pleased to be able to report continued growth in revenues and profits in the year to date. The Company continues to benefit from a high degree of recurring revenues and is trading very profitably and generating cash.

“Future revenue growth is likely to be driven by success in raising the awareness of the benefits of FeNO testing and continued expansion of our worldwide network of distributors. The Company is now in a strong financial position to continue to invest in these areas and is making good progress. I look forward to updating shareholders again at the time of the half-year results."

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