Diaceutics, the diagnostics data analytics and implementation services company, said it expects its revenue and adjusted earnings for 2020 to be ahead of revised market expectations despite the challenges presented by Covid-19.
In a trading update, Diaceutics said its revenue and adjusted EBITDA for the year to the end of December are expected to be about £12.6m and £0.5m respectively. This compares with revenues of £13.4m in 2019 and adjusted EBITDA of £2.2m.
The company also said it has a strong closing cash position of £25.3m, which includes the funds from the £20.5m share placing, completed in June.
By the end of 2020, the company said it had worked on 29 therapy brands for 23 pharma companies, compared with 25 therapy brands and 19 pharma companies at the end of 2019.
Diaceutics also said it had assessed the impact of Brexit on the organisation and has taken steps to mitigate this wherever possible, but added that Brexit is not expected to materially affect the business.
During the year, the company reduced staff numbers during the second half of the year and carried out a restructure with an exceptional charge of approximately £0.4m. Overall this will provide an annual cost saving of £1.9m for 2021.
Peter Keeling, the company's chief executive, said its restructuring along with its strong balance sheet, and position within the increasingly digital precision medicine marketplace, will enable Diaceutics to pursue growth and strategic opportunities as they arise.
"It is my belief that the 'new normal' emerging post the pandemic by mid 2021 will serve to further accelerate the use of real-world evidence and platform technologies thereby embedding precision testing as the essential component driving value for pharma's business model for the next decade," Mr Keeling said.