Diaceutics shares rise on robust organic growth

Published 13/05/2025, 10:46
© Reuters.

Investing.com -- Shares of Diaceutics PLC (LSE:LON:DXRX) climbed 2% on Tuesday following the company’s announcement of strong organic revenue growth for the fiscal year 2024 and continued positive performance into the first four months of 2025.

The diagnostics data analytics company reported a 36% increase in revenue to £32.2 million in FY24 and a 35% rise to £8.4 million in the early months of 2025, indicating that the business is on track to meet its revenue and EBITDA projections for FY25.

The company’s key performance indicators (KPIs) showed positive trends, including a 23% growth in Annual Recurring Revenue (ARR) to £16.8 million.

The number of enterprise engagements has risen from four to seven, and the company has added eight customers, bringing the total to 52, and 16 further brands, totaling 85.

These metrics suggest that Diaceutics’ offerings are increasingly resonating with its clientele, which now includes 18 of the top 20 global pharmaceutical companies.

Despite a slight decrease in the order book and total contract value (TCV) signed during FY24, the company’s strong year-to-date trading and a significant 93% increase in TCV to £18.7 million in the first four months have provided reassurance.

Stifel analysts have largely maintained their forecasts for the company, noting that Diaceutics has nearly completed its two-year investment period, with £12.7 million in cash remaining as of December 31, 2024.

The business is expected to shift towards modest profitability and positive net cash flows in 2025, as previously guided.

Stifel highlights Diaceutics’ very strong organic growth and notes that the company is trading at just 2.3x current FY25E EV/sales, compared to peers at approximately 3.5x, despite demonstrating superior top-line growth.

With limited direct tariff exposure and no significant impact on pharmaceutical customer decision-making seen in year-to-date trading, Stifel views the recent share pullback as an opportunity for investors.

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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