CNSL Cambridge Nutritional Sciences Plc

CAMBRIDGE NUTRITIONAL SCIENCES PLC

("CNS" or the "Company" or the "Group")

Trading update

CNS (AIM: CNSL), the specialist medical diagnostics company focused on promoting a personalised and functional approach to health and nutrition, is pleased to announce an update on the Group's trading for the year ended 31 March 2024, ahead of the release of its audited final results in July 2024

Highlights:

·    Revenue expected to be £9.8m (2023: £7.5m) representing 30% growth.

·    Gross profit margin of c.62% (2023: 47%)

·    Gross profit to exceed £6.0m (2023: £3.5m) representing c.70% growth.

·    Adjusted EBITDA¹ expected to be positive (2023: loss of £2.0m).

·    Free cash flow positive (2023: negative) with a net cash balance of £5.4m (2023: £5.1m).

¹Adjusted for exceptional items and share based payment charges.

2024 Financial performance:

The Group expects to report revenue growth for the year ending 31 March 2024 ahead of current market expectations and is on track to meet all its KPI market expectations for the full year.

Gross profit margin of c.62% (2023: 47%) has increased significantly with yields maintained following continued investment in production and operational improvements.

Improvement work on product yield that was started in April 2023 has contributed to a favourable gross profit with scrap costs falling 27% from FY23 to FY24.

Adjusted EBITDA¹ expected to be positive (2023: restated loss £2.0m) 

Outlook:

The new financial year has started well with good momentum going into the first quarter with a healthy order book. In FY25 we will see a more targeted sales focus on our markets and extending on the good growth made in the UK FY24.

Another key market for us is India, where we are developing digital technologies to increase awareness and drive demand from end users and healthcare practitioners.

Building on the investment in continuous improvement, further yield improvements have been identified and are being implemented in production while we are continuing to address efficiencies and increase capacity within CNS lab.

Jag Grewal, CEO, commented that: "I am delighted with our performance in 2024. We have delivered a very strong set of results while at the same time laying a solid foundation for the future in what is an increasingly important market of gut health diagnostics. We have strengthened both our operational performance and our organisation. I would like to acknowledge the hard work and commitment of the Cambridge Nutritional Sciences team who have been pivotal in delivering a strong performance in 2024. We look forward to an exciting 2025."

Directorate Change

Dr Simon Douglas, Chair of the Company, notified the Board that due to time commitments he wishes to step down from his position as Non-Executive Chair. The Company is pleased to announce that Carolyn Rand, currently independent Non-Executive Director will serve as Chair effectively immediately. Simon served on the board for three years and during that time, oversaw the rebranding to Cambridge Nutritional Sciences Group, PLC and the successful sale of both the Alva site and the CD4 Business including moving the head office from Alva in Scotland to Cambridgeshire. The disposals were key in refocusing the business on food sensitivity testing and ensuring it has sufficient resources to drive CNSL forward.

Cally Rand, said: "The Board would like to thank Simon for all his efforts over the last three years as Chair to refocus the business on food sensitivity testing, and for handing over a business that is now positioned for further growth in an exciting market."

Contacts: 

About Cambridge Nutritional Sciences plc

Cambridge Nutritional Sciences plc (AIM: CNSL) is a specialist medical diagnostics company focused on industry-leading Health and Nutrition products.