Oncimmune revenue falls as it implements new strategy

(Sharecast News) - Oncimmune reported revenue of £2.1m in its final results on Thursday, down from £3.8m for the prior extended 15-month period, with revenue from continuing operations totalling £1.2m. The AIM-traded firm said gross profit for the 12 months ended 31 August stood at £1.5m, compared to £1.8m, while gross profit from continuing operations was £0.8m.

Administrative expenses decreased to £6.1m, with expenses for continuing operations amounting to £5m.

Notably, profit after tax reached £4.1m, primarily due to a gain on disposal of £12.2m, despite a loss from continuing operations of £6.2m.

The company's gross cash balance at the period end was £3.2m, and net debt stood at £2.1m following the disposal and partial repayment of the debt facility.

On the operational front, Oncimmune noted the ongoing implementation of a new strategy announced in October, with four new projects signed since the beginning of the 2024 financial year, three of which involved major pharmaceutical companies.

Revenue for 2024 was expected to reach £3m, representing a growth rate of 150% compared to the 2023 financial year.

Progress towards the target was evident, with 75% of forecast 2024 revenue secured by the end of the first half.

The board said the company's commercial team was nearing completion, with one additional hire expected in Europe during 2024.

It anticipated revenue growth to accelerate towards the end of 2024 and beyond as the new commercial team gained traction.

The new senior management team, in place for almost six months, had conducted a comprehensive review of the group's operational capability and cost base.

They anticipated lower overheads in 2024, including costs associated with senior management.

Moreover, new equity-based rewards for senior management were under consideration to align their interests more closely with those of the company's shareholders.

"Whilst 2023 has seen significant changes to the operations and management of Oncimmune, I remain encouraged and optimistic about the business outlook for 2024 and beyond," said chief executive officer Martin Gouldstone.

"During my first six months as CEO I, together with the rest of the senior management team, have carried out a root and branch review of the operations and financials of the business and have formulated a focused strategy to see the group reach revenues in its ImmunoINSIGHTS business not previously achieved.

"I have been pleased to see some of the strategies beginning to bear fruit and look forward to being able to report on more positive progress in the coming months."

At 1326 GMT, shares on Oncimmune Holdings were up 6.41% at 21.81p.

Reporting by Josh White for Sharecast.com.