York-based Abingdon Health sees revenues more than double as firm works towards positive cash flow

Abingdon Health now said it is focused on “continued revenue growth and stringent cost control in order to achieve a cash flow positive position.”

The company announced cash at £1.9m as of 31 December 2023, down from £3.2m as of June 30.

The news comes less than three months after the firm announced that it had seen “strong progress” following its shift away from producing Covid 19 tests. The group said at the time that the pandemic had been a catalyst for the expansion of lateral flow self-testing across a range of other clinical areas.

In its most recent annual results, the company announced pre-tax losses of £3.5 million for the year ended 30 June.

Abingdon Health CEO, Chris Yates, said: “We are pleased to report triple digit revenue growth in the first six months of the financial year. We remain focused on continuing to drive revenue growth and strengthening our position as a leading lateral flow contract development and manufacturing organisation..

“We look forward to continuing to support the product development plans of our existing customers and we are also encouraged by the breadth and depth of the pipeline of contract service opportunities we are pursuing. Progress within our product business, including Abingdon Simply TestTM, is also encouraging, and we look forward to updating shareholders on further progress in both divisions in due course.

“We also remain highly focused on reducing our cash-burn in financial year 23/24 and beyond. Our priority remains in moving the Company to a positive cash flow position based on continued revenue growth and stringent cost control."

Abingdon Health said its growth had been driven by the Company’s contract service customer base across lateral flow research and development, technical transfer, manufacturing, analytical and regulatory services.

In September of last year, the company announced that it was working with London-based industrial design firm Moramma on plastic-free lateral flow tests.

Moramma first designed the concept for biodegradable and recyclable covid 19 tests in 2022, in response to the increased use of the tests during the pandemic.

Over the past year, Abingdon Health has also worked with Loop Diagnostics to support the development of an early diagnostic test for sepsis. The firm said the product is targeting a “significant unmet need” and that it will work closely with Loop Diagnostics to transfer the product into manufacturing.

Abingdon Health has also announced a number of staff changes, including the promotion of Laura Towse, who has been with the business since June 2023, to Group Financial Controller.