Oxford BioDynamics Reports Increased Revenue but Faces Cash Constraints in H1 2025
Why we think this is bad
While Oxford BioDynamics saw revenue growth, the company's financial position remains precarious. The operating loss of £5.88m, though slightly improved, is still substantial. The cash position, bolstered by a recent fundraising, is only expected to last until Q4 2025, raising serious going concern issues. The company's plan to 'right-size' and reduce overhead signals challenging times ahead. Despite progress with tests like PSE and CiRT, the focus on cash burn and profitability overshadows these developments. The high price-to-sales ratio of around 6 for a loss-making company, combined with significant execution, funding, and regulatory risks, paints a concerning picture. The use of terms like 'headwinds' and 'challenging market conditions' further underscores the difficult trading environment.
Key Points
- Revenue increased to £587k from £327k in H1 2024
- Operating loss of £5.88m, slightly improved from £5.99m in H1 2024
- Cash and term deposits at £4.26m, boosted by £7.35m fundraising in January 2025
- Material uncertainty about going concern, cash forecast to last until Q4 2025
- Plans to 'right-size' business and reduce fixed overhead
- Focus on growing PSE test sales in the USA
- Progress with PSE and CiRT tests, but overshadowed by financial concerns
- High execution, funding, and regulatory risks
Summary
Oxford BioDynamics reported interim results for H1 2025, showing revenue growth to £587k from £327k in H1 2024. However, the company still faces significant challenges:
- Operating loss of £5.88m, slightly improved from £5.99m in H1 2024
- Cash and term deposits of £4.26m, boosted by a £7.35m fundraising in January 2025
- Material uncertainty about the company's ability to continue as a going concern, with cash forecast to last only until Q4 2025
- Plans to 'right-size' the business and reduce fixed overhead
- Focus on growing PSE test sales in the USA
Despite some progress with tests like PSE and CiRT, the company's financial position remains precarious, with high execution, funding, and regulatory risks.