Yourgene revenue up 105% to £38m; chair steps down

Manchester-based molecular diagnostics firm Yourgene Health plc said its revenue for the year to March 31 were £37.6 million, up 105% on the previous year and in line with recently upgraded guidance.

In a full year trading update, Yourgene said its variable cost base is naturally reducing as Covid surge activities recede.

The firm said it has started consolidating its UK activities “through a programme of co-location and sharing support services” between Genomic Services and Genomic Technologies “where the pace of change during the pandemic originally required separation.”

As a result, the group’s annual operating cost base “will reduce significantly, by c. £5m pa on a like-for-like post-restructure basis.”

The restructuring commenced in the final quarter of FY22 and will be largely complete by the end of the first quarter of FY23.

One-off restructuring costs are anticipated to be in the range of £500,000 to £700,000.

Yourgene also announced that after a five-year tenure, Adam Reynolds will step down as chairman at the company’s next AGM.

Reynolds will remain on the board as a non-executive director.

John Brown, currently senior independent director, will assume the role of chairman.

Brown has over 20 years of capital markets experience in the healthcare and life sciences sector. He is currently a senior independent director of Acacia Pharma and is chairman of Calcivis.

Yourgene CEO Lyn Rees said: “We are pleased that the company’s performance in the last financial year has achieved the significantly upgraded guidance.

“The ongoing restructure will ensure that Yourgene is very well placed to meet the evolving needs of its customers by supplying an adaptable mixture of technologies and services, with our fast-growing Genomic Services offering expected to be a strong growth engine.

“As COVID surge testing recedes, we are creating a more focused growth platform to reap the benefit of previous investments.

“Our business has evolved significantly over the last 12 months and we have a broader platform, service offering and customer relationships globally from which to grow.

“As we reshape the business to deliver improved profitable growth through and beyond the post-pandemic period, we are already leveraging our technologies and our teams’ capabilities to good effect, capturing new opportunities and building on our existing partnerships.

“We thank our people for their support of the group’s continuing evolution. The consolidation of our operations will result in a more unified and efficient group.

“We are committed to creating long term shareholder value and, with further expansion into the Americas markets, FY23 and beyond will be an exciting time for Yourgene.

“I look forward to engaging with shareholders at our Capital Markets Day later today and sharing further detail around Yourgene’s positioning and growth drivers of Genomic Services, Americas NIPT markets and Ranger Technology.”