Shares in Belfast data analytics company Diaceutics jumped over 13 per cent to a new high as it said in a trading statement that it had exceeded market expectations in 2019.
Revenue of about £13.4 million (€15.66 million) for 2019, if confirmed, marks a rise of almost 29 per cent on the previous year, helped by an increase in client numbers. The company, which provides services to the global pharmaceutical industry, also said that earnings for the full year to end-December would be above £2.1 million, a rise from the £1.5 million recorded in 2018, and also ahead of previous forecasts.
Diaceutics credited a “strong trading performance in the final quarter, underpinned by an increase in the number of clients and an accelerated growth in product sales”, for helping the rise in revenues from £10.4 million reported in 2018.
Shares in the company jumped 13.24 per cent to 118.5 pence sterling.
It said all of its outstanding debt has now been retired from its balance sheet, resulting in net cash of £11.7 million, something that will enable the company to “expand globally”.
The company, which listed on London’s AIM market last year, noted that the overall market for precision medicines is expected to double in size from 2018 to 2026. Diaceutics expects to focus on the areas of oncology and healthcare data, with a concentration on the US and Asian markets.
"We are pleased to have delivered on both our operational and financial commitments, exceeding full year guidance, while continuing to invest in the long-term future of the group," Peter Keeling, Diaceutics chief executive, said.
The company’s nominated broker, Cenkos, said 2019 was “an excellent year for the business and the IPO proceeds are only just beginning to positively impact trading”.
Analyst Simon Strong said he was “conservatively” upgrading its revenue forecast for Diaceutics in 2020 by 6 per cent to £15.9 million. Costs associated with the launch of its Nexus platform mean that Cenkos left its earnings projections unchanged, but still 38 per cent ahead of the expected out-turn for 2019 at £2.9 million.
Diaceutics has spent an estimated £3 million on Nexus, its proposed software as a service platform, which Cenkos said will “fully productise the business, enable greater scalability, create more efficiencies and accelerate shareholder returns”.
