Diaceutics maintains FY targets with 22% revenue growth in H1

Published 22/07/2025, 08:16
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Investing.com -- Diaceutics PLC (LSE:LON:DXRX) ON Tuesday reported 22% year-over-year revenue growth at constant exchange rates for the first half of 2025, while maintaining its full-year targets.

The company delivered H1 2025 revenue of £14.6 million, representing 18% growth in reported terms.

Despite a slowdown in growth during the final two months of the period compared to the 35% growth reported for the four months to April, Diaceutics has reiterated its full-year target of 25% revenue growth, which implies approximately £40 million in revenue.

The diagnostic commercialization company showed significant improvement in its shift toward a subscription-based model, with approximately 70% of H1 revenues recurring in nature, up from about 55% in fiscal year 2024.

Diaceutics’ order book reached £29.4 million as of June 30, an 18% increase from year-end 2024.

With approximately £8.8 million expected to be recognized in H2 2025, this provides 79% visibility on full-year consensus revenue estimates, up from 71% visibility at the same point last year.

Annual Recurring Revenue grew 16% year-over-year to £16.4 million, reflecting the company’s success in driving recurring revenue growth.

The company is now working on 74 therapeutic brands across 43 customers, compared to 63 brands in H1 2024 and 85 brands in FY 2024.

Revenue per brand remained at a similar level at approximately £395,000 in H1 on an annualized basis versus about £380,000 for FY 2024.

Diaceutics has added another multi-year enterprise-wide engagement, contributing an Annual Recurring Revenue of £0.8 million in H1 2025, bringing the total to 8 enterprise engagements across 35 therapeutic brands.

The company delivered positive adjusted EBITDA in H1 and maintains confidence in returning to earnings profitability for the full year.

Current market consensus estimates sit at £7.2 million adjusted EBITDA (18.0% margin) and £1.0 million net income for the fiscal year.

Gross cash stood at £10.4 million on June 30, below the £12.7 million reported at the end of December 2024 and £13.7 million in April 2025. This figure is expected to improve in H2 as the company anticipates at least free cash flow break-even for the full year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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