Oncimmune Reports 138% Revenue Growth Amid Ongoing Losses in FY2024 Results
Why we think this is neutral
While Oncimmune has demonstrated impressive revenue growth of 138% and secured significant new contracts, the company continues to operate at a loss with increasing net debt. The successful debt restructuring and equity fundraise have improved the capital structure, but material uncertainties regarding going concern persist. The strong repeat business and increased average contract value are positive indicators, but industry challenges and ongoing cash flow concerns temper the outlook.
Key Points
- Revenue increased by 138% to £2.7m in FY2024
- 16 new contracts closed, with over half from global pharma and biotech companies
- Average contract value increased by 186% compared to previous year
- Loss for the year was £3.5m, down from £6.2m in FY2023
- Successful debt restructuring, converting €4.0m of debt to equity
- Equity fundraise completed, raising £2.3m gross proceeds
- Cash balance decreased to £0.8m from £3.2m in the previous year
- Net debt increased to £4.3m from £2.1m in the previous year
- 81% of revenues came from existing customers
- Outlook for FY2025 projects revenue around £4m, a 33% uplift from FY2024
- Material uncertainties regarding going concern highlighted
Summary
Oncimmune Holdings plc has released its FY2024 results, showcasing 138% revenue growth to £2.7m. The company closed 16 new contracts, with over half from global pharma and biotech companies, and increased its average contract value by 186%. However, Oncimmune still reported a loss of £3.5m for the year. The company successfully completed a debt restructuring, converting €4.0m of debt to equity, and raised £2.3m through an equity fundraise. Despite these positive developments, material uncertainties regarding going concern were highlighted, stemming from cash flow concerns and dependence on new order intake. The outlook for FY2025 projects revenue around £4m, representing a 33% uplift from FY2024.