UK's Diaceutics H1 revenue rises, gross margin expands

By Reuters News


Overview

  • UK diagnostic commercialization firm's H1 revenue rose 20% yr/yr to £17.5 mln

  • Annual recurring revenue up 79% and gross margin expanded to 85%

  • Order book rose 38% to £43.7 mln, with positive free cash flow


Outlook

  • Company says delivered revenue, contracted revenue and pipeline provide 107% visibility on FY 2026 median analyst consensus revenue estimates

  • Diaceutics says Board remains confident in delivering against its 2026 expectations

  • Company expects higher weighting of revenue and profitability in H2 2026


Result Drivers

  • RECURRING REVENUE GROWTH - Co said 79% increase in annual recurring revenue and higher net revenue retention were driven by deeper customer relationships, broader adoption of its services, and improved account planning

  • EXPANSION INTO NEW MARKETS - Co said its 'Precision For All' strategy expanded its addressable market and contributed to revenue growth, with 22% of H1 revenue from new diagnostic-driven therapy brands

  • OPERATIONAL EFFICIENCY - Co said automation and AI-enabled workflows reduced data processing costs and supported margin expansion as revenue scaled


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 17.46 mln

H1 Gross Margin

85.00%

H1 Gross Profit

GBP 14.86 mln

H1 Order Backlog

GBP 43.68 mln

H1 Pretax Loss

GBP 3.97 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Diaceutics PLC is GBp215.00, about 26.5% above its September 21 closing price of GBp170.00

  • The stock recently traded at 60 times the next 12-month earnings vs. a P/E of 70 three months ago


Reuters Recommended Reads

  • Sept 21 - UK's Invinity H1 revenue rises on project deliveries

  • Sept 21 - UK's B90 Holdings H1 revenue rises 38%, net loss narrows

  • Sept 21 - UK's Getech H1 revenue rises on Globe subscription renewal


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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