Horizon transformation sees higher revenues and slashed losses
The transformation of Horizon Discovery from a scientifically-led business, into a fully commercial tools and services company is continuing apace after an excellent set of interims to June 30.
A world leading gene editing business based in the Cambridge technology cluster, Horizon increased revenues 13.9 per cent to £28.6 million while slashing post-tax losses from £7.6m to £5.3m. The company has £24.8m cash – with virtually no burn from this time last year.
Horizon reports a strong start to trading in the second half; full year revenues are expected to be second half weighted and in line with current market expectations.
CEO Terry Pizzie said: “Horizon has enjoyed a solid performance in the first half of the year with the business as a whole performing in line with expectations.
“Growth has largely been driven by strong performance in the group's Bioproduction and Screening business units, which increased revenues by 154.5 per cent and 38.7 per cent, respectively.
“The Research Reagent business unit, which encompasses more than half of group revenues, also had a good start to the year and we expect strong growth in the second half as this business unit benefits from the increased capacity in cell line engineering that we have implemented in the first half.
“We have experienced some organisational challenges with our diagnostics business unit, but the corrective action that we have put in place should lead to an improved performance in the second half.
“The business is on track to complete the delivery of the productivity and eCommerce initiatives that we are implementing as part of our Investing for Growth strategy.
“We expect these investments to generate significant payback in the short and long-term, by reducing costs, increasing capacity and operating leverage, whilst also opening up new avenues of growth.
“With our traditional second-half weighting and strong order book for the remainder of 2019, we are well positioned to deliver on our strategy, as we continue to transform Horizon from a scientifically-led business, into a fully commercial tools and services company with industrialised processes and customer-directed R & D.”