Final Results
Summary by AI BETAClose X
NIOX GROUP PLC
("NIOX" or the "Company" and, together with its subsidiaries, the "Group")
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
Oxford, UK - 24 March 2026: NIOX Group plc (AIM: NIOX), a medical device company focused on point-of-care FeNO testing for the diagnosis, monitoring and management of asthma and COPD, today announces its results for the year ended 31 December 2025.
Financial highlights
· Revenue growth of 17% (15% on a constant currency basis) to £48.7m (2024: £41.8m).
· Clinical revenue1 growth of 7% (6% on a constant currency basis) to £38.6m (2024: £36.1m).
· Research revenue2 growth of 77% (77% on a constant currency basis) to £10.1m (2024: £5.7m).
· Adjusted EBITDA3 up 21% to £16.7m (2024: £13.8m), reflecting strong operational leverage.
· Strong balance sheet with cash of £19.9m (31 December 2024: £10.9m) after the payment of a £5.0m dividend in June 2025.
· The Board recommends the payment of a final dividend of 1.55 pence per share (2024: 1.25 pence).
Financial progress
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2025
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2024
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£m |
£m |
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Revenue |
48.7 |
41.8 |
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Gross margin |
69% |
72% |
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Total expenditure4 |
(17.0) |
(16.4) |
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Adjusted EBITDA3 |
16.7 |
13.8 |
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Adjusted EBITDA margin |
34% |
33% |
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Operating profit |
10.7 |
7.7 |
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Profit before tax |
11.2 |
7.8 |
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Profit for the year from discontinued operations |
- |
0.3 |
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Profit for the financial year |
7.0 |
3.7 |
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Cash at year end |
19.9 |
10.9 |
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1 Clinical revenue represents sales to physicians and hospitals for use in clinical practice. 2 Research revenue is from pharmaceutical companies and contract research organisations (CROs) for use in clinical studies. 3 Earnings before interest, tax, depreciation, amortisation and share-based payment expenses. 4 Excludes depreciation, amortisation and share-based payment expenses. |
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Operational highlights
· Total number of NIOX® FeNO tests sold in the year increased by 9% to 7.2m (2024: 6.6m), indicating strong adoption and recurring usage.
· Achieved 7% growth in the NIOX® Clinical device installed base, driven by increased adoption of FeNO and NIOX® by new customers integrating FeNO testing into routine medical practice across all key clinical markets.
· Strategically strengthened US commercial capabilities through the addition of a focused direct sales team, complementing existing distribution partners and sales channels to accelerate NIOX® installed base growth.
· Delivered record Research business sales during the year, while simultaneously growing the evidence base for FeNO beyond asthma and into COPD.
· Successfully introduced the new, next generation NIOX PRO® device, with the first sale in December 2025.
· Initiated the early-stage development of the home-use device, the NIOX MyNO®.
Post-period end update
· On 5 March 2026, the Japanese Ministry of Health, Labour and Welfare announced an increase in reimbursement for FeNO testing from JPY 1,000 to JPY 1,450 per test.
· Trading in 2026 financial year has started well.
Ian Johnson, NIOX's Chairman, said: "I am pleased to report that 2025 has been another excellent year for NIOX. The Clinical business continued to perform well driven by robust demand and the Research business saw a notable uplift in revenues, driven by a surge in clinical trials for COPD. This is an exciting development for the Company and a clear demonstration of the growing evidence for the use of FeNO beyond asthma.
I am incredibly proud of what NIOX has achieved in the past year. We have continued to execute our strategy, build momentum in both clinical and research markets, and strengthen our foundations for sustainable long-term growth. My thanks go to our management team and all our colleagues worldwide for their hard work, dedication, and commitment.
With a strong financial position, expanding market opportunities, and continued innovation, NIOX is well-positioned to deliver further shareholder value."
Jonathan Emms, NIOX's Chief Executive Officer, said: "2025 was a year of significant progress for NIOX, both operationally and strategically, marked by strong revenue growth.
The Clinical business continued to perform well, supported by robust demand from healthcare providers, record levels of testing during the year, and further expansion of the NIOX® installed base, which increased by 7% year-on-year. This year saw the highest number of NIOX® tests performed, reflecting both increased utilisation and the growing role of FeNO testing in routine clinical practice. In the US, sustained engagement with payers has resulted in approximately 93% of insured lives now having coverage for FeNO testing, materially supporting adoption and long-term growth.
The Research business benefited from a marked rise in COPD-related clinical trials, highlighting the importance of FeNO testing and its growing relevance in COPD diagnosis and management. With approximately 380 million people affected globally, COPD is a major chronic disease and an underserved area of respiratory care. The studies conducted on COPD will be published in leading medical journals, creating a solid evidence base for the use of FeNO testing and NIOX® in managing this condition. This represents an important and exciting new future opportunity for NIOX in supporting the expanding role of FeNO testing beyond asthma.
A highlight of the year was the introduction of NIOX PRO®, the next-generation FeNO device, at the European Respiratory Society congress in September. Market-by-market regulatory approvals will occur throughout 2026. Designed by NIOX, inspired by healthcare professionals, and informed by the needs of asthma patients worldwide, NIOX PRO® offers market-leading accuracy and reproducibility while enhancing the user experience.
Operationally, we maintained strong cost control and grew cash and profitability whilst investing strategically in US commercial capabilities and product development. The NIOX team remained focused on executing and delivering the Company's strategic mission.
Looking ahead, the FeNO market remains highly attractive. We anticipate sustained demand for FeNO testing in the Clinical business, driven by the ongoing global focus on respiratory health, the growing adoption of FeNO testing in asthma and the expanding body of research into COPD. The Company has strong foundations in place to capitalise on the FeNO opportunity, and we are confident in our ability to deliver further growth and shareholder value in 2026 and beyond."
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Contacts |
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NIOX |
Tel: +44 (0) 3303 309 356 |
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Jonathan Emms, Chief Executive Officer Sarah Duncan, Chief Financial Officer |
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Singer Capital Markets (Nominated Adviser and Broker) Jen Boorer / James Fischer
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Tel: +44 (0) 20 7496 3000 |
The annual report and audited consolidated financial statements will be available on the Company's website later today. Please visit: www.investors.niox.com/investors/financial-reports/
About NIOX
Our mission is to improve the diagnosis, monitoring and management of both asthma and COPD by providing greater patient access to FeNO testing. Asthma and COPD are two of the biggest healthcare issues globally, with more than 600 million sufferers combined, many of whom are undiagnosed or are misdiagnosed. NIOX is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a precise biomarker for type 2 inflammation which is present in asthma and COPD. Our market leading device, NIOX VERO®, is increasingly recognised by healthcare professionals as an important tool to improve the diagnosis, monitoring and management of asthma and COPD. NIOX VERO® is also the device of choice by leading clinical research organisations for respiratory studies.
An introductory presentation about the NIOX Group is available at: www.investors.niox.com/resource/category/presentations/
NIOX provides products and services via its direct sales organisation and extensive distributor network in more than 50 countries. For more information, please visit www.niox.com
Forward-looking statements
This press release contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses, and prospects of NIOX. The use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or "believe" and similar expressions (or the negatives thereof) are generally intended to identify forward-looking statements. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Nothing contained in this press release should be construed as a profit forecast or profit estimate. Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. NIOX undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.
BUSINESS REVIEW
A year of strong growth
NIOX is the market leader in point-of-care FeNO testing for the diagnosis, monitoring and management of asthma.
Group revenue increased year-on-year, with both the Clinical and Research businesses contributing to growth. Revenues for the year were up 17% (up 15% on a constant currency basis) to £48.7 million (2024: £41.8 million). EBITDA margin increased to 34% (2024: 33%).
FeNO testing rates continued to increase across most markets, and total tests sold in the year across the Clinical and Research businesses increased by 9% to 7.2 million (2024: 6.6 million).
Clinical sales grew by 7% (6% on a constant currency basis) to £38.6 million (2024: £36.1 million). Recurring revenues from consumables used in routine FeNO testing continue to account for over 90% of clinical sales, supporting high revenue visibility and a resilient business model.
Growth was geographically broad-based. On a constant currency basis, versus the prior year:
· APAC sales were up 5%. China achieved 14% sales growth, a strong result in a highly competitive market. Continued success in tender processes highlights the quality and differentiation of the NIOX product portfolio compared to low-cost competitors. Sales in Japan were adversely affected by a severe flu season in the second half of the year, as healthcare professionals focused on administering flu jabs and managing the outbreak. Medical practice has since returned to normal, and demand for FeNO in Japan remains robust, reflected in strong sales of NIOX® devices to new customers in 2025. In March 2026, the Japanese Ministry of Health, Labour and Welfare announced a 45% increase in the reimbursement rate to doctors for FeNO testing. This is a strong endorsement for FeNO testing and will help increase testing volumes and further reinforce the long-term attractiveness of the Japanese FeNO market.
· EMEA sales grew 6%. UK sales grew 5% on a constant currency basis for the full year. Strong growth was also recorded across several other markets, with Belgium, Luxembourg and the Nordics all increasing by 14%, and Portugal delivering particularly strong growth of 28%.
· Americas sales rose by 7% (compared with 6% growth in the previous year). The US delivered an impressive 8% growth despite the absence of a contract sales force during much of 2025 and increased competitive activity in the market. To support future growth, NIOX strategically strengthened its US commercial capabilities by adding a focused direct sales team, complementing existing distribution partners and sales channels to accelerate expansion of the NIOX® installed base.
Research sales grew by 77% in the period to £10.1 million (2024: £5.7 million). The Research business benefited from an unprecedented level of pharmaceutical company-sponsored studies in both asthma and COPD. Growth was underpinned by a marked increase in COPD-related studies, reflecting the emerging recognition of type 2 inflammation in COPD and the use of FeNO, measured by NIOX®, as a precise biomarker. Many of these studies are expected to be published in leading medical journals, further strengthening the clinical evidence base and supporting the expanding role of FeNO testing beyond asthma.
Financial Position
The Group ended the year with a strong balance sheet, net cash of £19.9 million (2024: £10.9 million) after the payment of a £5.0 million dividend in June 2025 and with no debt. Cash generation remained robust, reflecting the business's underlying profitability, high level of recurring revenue and efficient operating model. This financial strength provides the flexibility to invest in product development, expand commercial reach and deliver long-term shareholder returns.
Principal Challenges
Today, the awareness and usage of FeNO testing and NIOX® amongst respiratory specialists is relatively high. Most asthmatics are under the care of primary care doctors, and the awareness and usage of FeNO are significantly lower than in the specialist community. This means that there is huge, untapped potential in the FeNO testing market. The primary challenge the NIOX® business faces is increasing awareness and usage of FeNO testing, particularly among the primary care customer group.
The Company continues to engage with respiratory professionals to promote the use of FeNO tests in new and underserved customer segments, such as primary care settings and pharmacies, which provides a significant growth opportunity for NIOX.
Outlook
NIOX is a highly robust, cash generative, scalable business with best-in-class technology. The NIOX mission is to improve the diagnosis, monitoring and management of asthma and COPD by providing patients with greater access to FeNO testing. Core markets remain large and underserved and offer significant potential for ongoing organic growth. The Group has a robust strategy in place to expand the business and generate profitable growth. The emerging evidence for the use of FeNO in COPD represents a large and exciting incremental future growth opportunity. The 2026 financial year has started well and we look forward to the future with confidence.
OPERATING REVIEW
Our Products
The NIOX portfolio now comprises two devices: the established NIOX VERO® and the next-generation NIOX PRO®. NIOX VERO® is approved and reimbursed in most major markets and is available in more than 50 countries via NIOX's international network of distribution partners. NIOX continues to set the standard for point-of-care measurement of FeNO in asthma with COPD set to be a significant incremental future opportunity.
The Company's NIOX VERO® is the market-leading device for measuring FeNO. This is a non-invasive, point-of-care system which accurately measures the patient's FeNO level. It is quick, easy to use and reliable. The system comprises a small portable device and a range of consumables, including sensors, individual disposable mouthpieces and breathing handles.
NIOX PRO® is the Group's next-generation FeNO platform, designed to build on the proven clinical performance of NIOX VERO® while offering enhanced connectivity, usability, improved portability and advanced connectivity features, while maintaining the market-leading accuracy and reproducibility for which NIOX® devices are known. The device features an extended shelf life of up to six years and more compact packaging, reducing waste and improving supply-chain efficiency for customers. Regulatory submissions are underway, with approvals expected on a phased basis across key markets.
Market Environment
Asthma remains one of the world's most significant healthcare challenges. The condition results in approximately 1,000 deaths each day, and many more patients experience severe exacerbations requiring emergency intervention and hospital admission. Against this backdrop, the need for accurate, non-invasive point-of-care diagnostic and monitoring tools to support earlier and more effective management of airway inflammation continues to grow.
FeNO testing is still early in its lifecycle and has relatively low market penetration. It is now widely recognised as the gold standard for identifying and monitoring type 2 inflammation in asthma, providing clinicians with a fast, reliable biomarker to guide diagnosis and optimise treatment. Increasing awareness and education remain a key priority for the Group to drive adoption across healthcare systems worldwide. At the same time, progress continues to be made in improving reimbursement and insurance coverage; in the US, 93% of insured lives now have access to FeNO testing, up from 84% in 2024.
Evidence is also building around the potential role of FeNO testing in the diagnosis, monitoring and management of COPD patients with type 2 inflammation, representing an exciting opportunity for NIOX. Worldwide, 380 million people are estimated to be living with COPD. During the year, the Company refined its core messaging and promotional content to reflect this broader clinical positioning and to support the growing research and professional interest in FeNO's relevance for COPD.
Although awareness and adoption of FeNO testing are increasing, substantial global potential remains untapped. The Group's commercial strategy therefore continues to prioritise deeper engagement with respiratory professionals in new and underserved segments, including primary care and pharmacy settings, to help embed FeNO testing as a routine part of clinical assessment and ongoing disease management.
Looking ahead, NIOX anticipates that as FeNO testing becomes further integrated into professional healthcare, asthma management will increasingly shift to home settings, mirroring the evolution seen in other chronic conditions, such as diabetes and hypertension. In preparation for this long-term trend, the Group is advancing the development of NIOX MyNO®, a device specifically designed for home use.
The Opportunity
Asthma
Asthma affects over 340 million people worldwide, and this is predicted to grow exponentially as countries become more urbanised. In approximately 50% of cases, asthma is either not diagnosed or is misdiagnosed, which leads to a delay in asthma patients receiving the care that they need. Following a diagnosis of asthma, it is essential to regularly monitor the condition to confirm the effectiveness of treatment and patient adherence.
Asthma is a condition characterised by inflammation of the airways and lungs. Nitric oxide is produced by type 2 inflammatory cells and can be precisely measured in exhaled breath, known as FeNO. Measuring FeNO helps medical professionals assess lung inflammation in asthmatics and is a precise biomarker of type 2 inflammation. FeNO measurements can increase the likelihood of a correct diagnosis by up to seven times.
The American Thoracic Society ("ATS") recommends that FeNO testing be part of the ongoing care of asthmatics and a tool for diagnosing asthma. This is the latest example from an increasing body of highly credible, evidence-based medical guidelines worldwide that have recommended FeNO testing as a routine part of diagnosing and managing asthma. The guidelines are based on a substantial body of published clinical trials that demonstrate the benefits of FeNO testing. Measuring FeNO as part of ongoing asthma management has been shown to decrease asthma exacerbations by 50%.
In 2025, the Global Initiative for Asthma ("GINA") published updated asthma treatment guidelines that emphasise the role of type 2 inflammation in asthma and recommend the use of FeNO testing for both diagnosis and ongoing management.
In the UK, the National Institute of Clinical Excellence ("NICE") published updated asthma diagnosis, monitoring, and treatment guidelines in December 2024, noting that FeNO testing should be used as the primary diagnostic tool for children suspected of having asthma and as a joint primary diagnostic tool for adults.
Further impetus is coming from a new class of biologic anti-inflammatory medicines for the treatment of type 2 inflammatory asthma. Biologic therapies are targeted at asthmatics with increased inflammation and, therefore, elevated FeNO. The cost of these new medicines is high. This means that some pharmaceutical companies are investing resources to raise awareness and increase the use of FeNO testing to identify patients most likely to respond to treatment, as they seek to establish this new class of drugs as an effective line of therapy.
COPD
NIOX has a well-established position in asthma diagnosis, monitoring, and management through its market-leading FeNO technology. Emerging clinical evidence now highlights the role of FeNO in identifying type 2 inflammation within COPD, a patient group more likely to benefit from targeted anti-inflammatory treatment, such as inhaled corticosteroids and biologic medicines. This creates a significant future growth opportunity for NIOX.
NIOX VERO® has regulatory approval in most major markets for measuring type 2 inflammation, a pathway that underpins both asthma and a substantial subgroup of COPD patients. This means that existing NIOX® technology can be readily applied to COPD without the need for new licensing, thereby extending its clinical utility beyond asthma to a much larger patient population.
NIOX's Research business acts as an important halo for the Clinical business, with the majority of published studies using NIOX® as the device of choice. By influencing thought leaders and key opinion leaders, this research presence is expected to drive adoption in the clinical segment as clinicians follow the guidance of experts. Emerging clinical evidence suggests that FeNO can identify type 2 inflammation in COPD, enabling more personalised care and optimised anti-inflammatory medicine. This, in turn, may help lower exacerbation rates and the associated burden on healthcare systems. FeNO monitoring in COPD represents a significant new incremental opportunity for NIOX.
While further clinical adoption and formal guideline inclusion remain future milestones, NIOX is strongly positioned to capitalise on this opportunity. With its technology already licensed for type 2 inflammation, a robust infrastructure, and leadership in FeNO testing, the Company is well-placed to expand into COPD management and capture growth from this emerging patient segment.
Strategic Priorities
NIOX remains focused on advancing its mission to improve the diagnosis, monitoring, and management of asthma and COPD through innovative point-of-care FeNO testing. The Company's strategic priorities are designed to strengthen its market leadership, accelerate product development, and drive sustainable growth.
1) Increasing US FeNO Penetration
Throughout 2025, management made targeted, performance-driven adjustments to accelerate momentum and ensure NIOX reaches its full potential in the US. As part of this, the Company implemented a revised go-to-market model. Historically, relying solely on external sales partners had not yielded the desired results, prompting the establishment of a small direct sales capability to work alongside existing distribution partners and sales channels to accelerate the NIOX® installed base growth.
Under this hybrid approach, distributor partners and inside sales and marketing teams will work together, with a dedicated direct field-based sales team focused solely on new device installations in high-priority geographies and customer segments. In parallel, the existing distributors, inside sales and marketing teams will continue to support current customers and drive recurring revenue growth. The new field-based sales team will not be deployed and fully operational until the middle of 2026.
This NIOX-led, targeted approach is designed to deliver more consistent and scalable growth and represents a key strategic step for the Group in realising the full potential of the US market.
2) Innovation and Product Development
NIOX PRO®
The next-generation FeNO device, the NIOX PRO®, was introduced as planned at the European Respiratory Society in September 2025 and received extremely positive feedback from both customers and distribution partners. The first sale was made in December 2025. NIOX PRO® offers the same accuracy and reproducibility as NIOX VERO® with the additional benefits of enhanced usability, portability and connectivity. NIOX PRO® is fully compatible with existing consumables.
Development costs totalling £1.3 million have been capitalised in the year (2024: £0.9 million) in accordance with accounting standards. The aggregate development costs of the NIOX PRO®, including tooling, are expected to total £2.5 million, with £2.2 million already incurred. A few residual costs are expected in 2026 related to product registration across markets.
NIOX Cloud®
To complement the new NIOX PRO® device and the future home-use NIOX MyNO® device, the Company is developing NIOX Cloud®, a cloud-connected platform that will enable healthcare professionals and patients to access and manage their NIOX® devices data from anywhere. The platform recognises each customer's device and offers one-tap ordering, allowing users to quickly and effortlessly request quotes for consumables.
By synchronising data, NIOX Cloud® proactively notifies users when consumables need replenishing or when any support actions require attention, ensuring a seamless, end-to-end customer experience.
Development of NIOX Cloud® is progressing well and remains on track for launch in the first half of 2026. Total costs are expected to be approximately £0.3 million and will be incurred during 2026.
NIOX MyNO®
Development of NIOX MyNO®, the home-use FeNO monitoring device, commenced in 2025. Building on the technology and clinical credibility established by NIOX, the MyNO® device aims to create a whole new home testing market. At the same time as making FeNO testing more accessible by enabling patients to measure airway inflammation from home and share results digitally with their clinicians. Increased FeNO levels are an early indicator of rising airway inflammation and can signal an impending asthma attack, making timely monitoring particularly valuable. This approach supports more personalised and proactive management of asthma, helping to reduce exacerbations, avoid unnecessary treatment escalations and improve long-term disease control.
The expectation is that the Company will incur approximately £1.5 million of development costs in 2026, which will be expensed in the income statement until technical feasibility is determined. To accelerate progress, we have now engaged an external consultancy firm that previously worked on the development of NIOX VERO® to work alongside our manufacturing partners.
NIOX MyNO® is not expected to generate near-term revenue, however, it represents a longer-term opportunity aligned with the growing trend toward home monitoring and the increasing integration of remote diagnostic tools into respiratory care pathways.
3) Driving Adoption and Clinical Education
NIOX is investing in educational initiatives for clinicians, healthcare providers and patients to ensure broader adoption of FeNO testing in clinical practice. This includes expanding training programmes, publishing clinical evidence, and engaging with key opinion leaders in respiratory medicine.
During 2025, NIOX reached 2.6 million healthcare professionals with digital advertisements and 4 million patients with educational messages about FeNO and asthma.
With a focus on these strategic priorities, NIOX aims to deliver long-term value for shareholders, improve patient outcomes, and reinforce its position as a global leader in FeNO testing.
Summary and outlook
2025 has been a strong year for NIOX. Revenue growth in our Research business was driven by a surge in clinical trials for COPD, reflecting the expanding evidence for FeNO beyond asthma.
The successful introduction of NIOX PRO®, together with the development of the cloud-connected NIOX Cloud® platform, positions NIOX to deliver a seamless, end-to-end experience for healthcare professionals and their patients.
Looking ahead, the Company sees significant growth opportunities in the US market.
2026 has started well, including positive FeNO reimbursement increases in Japan that further support the adoption of FeNO testing. We are excited for the future. With a strong financial position, innovative products, and a committed global team, NIOX is well-placed to execute its strategy, support customers, and deliver attractive shareholder returns in the years ahead, including a return of at least 80% of free cash flow to shareholders over the medium term.
FINANCIAL REVIEW
NIOX's financial performance reflects continued execution of the Group's strategy, resilient demand for FeNO testing across core markets and disciplined financial management, resulting in sustained revenue growth, strong margins and robust cash generation. The Group ended the year in a strong financial position, providing a solid platform to support continued long-term growth.
The Group considers its key financial performance indicators to be revenue and adjusted EBITDA, which the Board uses to assess underlying performance, operational efficiency and progress against strategic objectives.
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2025 |
2024 |
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£m |
£m |
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Revenue |
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48.7 |
41.8 |
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Cost of sales |
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(15.0) |
(11.6) |
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Gross profit |
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33.7 |
30.2 |
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Gross margin |
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69% |
72% |
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Research and development costs |
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(2.6) |
(2.5) |
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Sales and marketing costs |
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(11.4) |
(11.2) |
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Administrative expenses |
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(9.0) |
(8.8) |
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Adjusted EBITDA1 |
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16.7 |
13.8 |
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Operating profit |
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10.7 |
7.7 |
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Other losses |
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(0.3) |
(0.6) |
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Other income |
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0.6 |
- |
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Net finance income |
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0.2 |
0.7 |
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Profit before tax |
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11.2 |
7.8 |
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Taxation |
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(4.2) |
(4.4) |
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Profit for the financial year from continuing operations |
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7.0 |
3.4 |
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Profit for the financial year from discontinued operations2 |
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- |
0.3 |
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Profit for the financial year |
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7.0 |
3.7 |
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Cash and cash equivalents |
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19.9 |
10.9 |
1 Earnings before interest, tax, depreciation, amortisation and share-based payment expenses.
2 On 9 April 2020, the Group announced that the development and commercialisation agreement with AstraZeneca was terminating. As such, the COPD business results are classified as a discontinued operation.
Revenue
NIOX® revenues for the year were £48.7 million (2024: £41.8 million). NIOX® clinical revenue of £38.6 million (2024: £36.1 million) represents sales to physicians and hospitals for use in clinical practice and to the Company's distributors. NIOX® research revenue of £10.1 million (2024: £5.7 million) is from pharmaceutical companies and contract research organisations (CROs) for use in clinical studies.
A substantial portion of NIOX® revenue growth was driven by the Research business, which benefited from an unprecedented level of pharmaceutical company-sponsored studies in both asthma and COPD.
Clinical sales grew by 7% during the year, supported by continued adoption of FeNO testing in clinical practice and sustained demand across the Group's major markets.
Gross profit
Gross profit on NIOX® revenue was £33.7 million (2024: £30.2 million). Gross margin at 69% (2024: 72%) was lower than the previous year, primarily due to a higher mix of device-heavy research sales.
Research and development
Research and development expenditure, which includes regulatory, quality assurance, medical affairs and device development costs, increased marginally to £2.6 million (2024: £2.5 million), reflecting the investment in the development of the NIOX MyNO® home-use device, which commenced during the year.
The next-generation FeNO clinical device, the NIOX PRO®, was introduced during the second half of the year, and £1.3 million of development costs were capitalised (2024: £0.9 million).
Sales and marketing
Sales and marketing costs increased to £11.4 million (2024: £11.2 million), primarily reflecting investment in a direct sales force in the US. Recruitment started in Q4 2025, and a full-year impact of approximately £1.5 million is expected in the next financial year.
Administrative expenditure
Administrative expenditure, which includes overheads relating to corporate functions, centrally managed support functions, and corporate costs, increased to £9.0 million (2024: £8.8 million), primarily due to one-off costs of £0.3 million associated with the withdrawn Keensight bid.
Other income
Other income was £0.6 million (2024: £nil), comprising £0.3 million of royalty income from Beyond Air and a £0.3 million gain on the disposal of certain legacy assets.
With effect from Q4 2024, the Group is entitled to a royalty of 5% on the net sales of Beyond Air's LungFit® device in the USA, capped at $6.0 million.
In December 2025, the Group received cash proceeds of £0.3 million from the sale of certain legacy respiratory-related intellectual property and associated manufacturing equipment acquired as part of the Prosonix Limited acquisition in 2015. As these assets had previously been written down to a nil carrying value, the proceeds have been recognised in full as other income as this was non-recurring.
Taxation
The tax expense for the year was £4.2 million (2024: £4.4 million), of which £0.1 million (2024 £0.1 million) related to corporation tax payable in Germany and China, and £4.1 million (2024: £4.3 million) related to deferred tax charged to the income statement in relation to taxable profits generated in Sweden, which resulted in the utilisation of brought forward losses during the period. A deferred tax asset in Sweden had previously been fully recognised in respect of carried-forward trading losses.
Earnings per share
Basic earnings per share for the year was 1.69p (2024: 0.88p) and diluted earnings per share for the year was 1.64p (2024: 0.83p), reflecting a profit after tax of £7.0 million (2024: £3.7 million). The increase in earnings per share primarily reflects higher operating profitability during the year.
Excluding the impact of interest, tax, depreciation, amortisation and share-based payment expenses, adjusted basic earnings per share from continuing operations for the year was 4.03p (2024: 3.23p). See note 9.
Basic earnings per share from continuing operations was 1.69p (2024: 0.81p), and diluted earnings per share for the year was 1.64p (2024: 0.76p), reflecting a profit from continuing operations for the financial year of £7.0 million (2024: £3.4 million).
Statement of financial position
The Group's total equity at 31 December 2025 was £67.6 million (2024: £59.5 million).
Inventories increased by £1.0 million, reflecting higher year-end stock of NIOX VERO® mouth filters. These were purchased in bulk ahead of switching production to the new NIOX PRO® design, to ensure continuity of supply into markets awaiting regulatory approvals. In anticipation of demand for the new NIOX PRO® device, we plan to build a reserve equivalent to approximately five months' supply.
Other comprehensive expense
Other comprehensive income of £5.5 million (2024: £4.2 million expense) relates to exchange differences arising from the translation of foreign operations into British pound sterling. The current year income is largely due to the strengthening of the Swedish krona against the British pound.
Cash flow
The Group's cash position increased to £19.9 million from £10.9 million at 31 December 2024.
Cash generated from operations during the year amounted to £15.7 million (2024: £17.4 million). In the previous year, £0.8 million was used in discontinued operations, and £3.7 million was received from Beyond Air under the terms of the relevant settlement agreement. Excluding these one-off items, cash generated from operations increased by £1.2 million year on year.
During the year, a dividend of £5.0 million (2024: £4.2 million) was paid to shareholders, and £1.3 million (2024: £0.9 million) was invested in the development of the NIOX PRO®.
Exchange differences on cash and cash equivalents arose from the translation of foreign currency balances at the beginning and end of the year. The exchange loss for the year was £0.1 million (2024: £0.1 million).
Consolidated statement of comprehensive income
for the year ended 31 December 2025
|
|
|
2025 |
2024 |
|
|
Notes |
£m |
£m |
|
Continuing operations |
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers |
|
48.7 |
41.8 |
|
Cost of sales |
|
(15.0) |
(11.6) |
|
Gross profit |
|
33.7 |
30.2 |
|
|
|
|
|
|
Research and development costs |
|
(2.6) |
(2.5) |
|
Sales and marketing costs |
|
(11.4) |
(11.2) |
|
Administrative expenses |
|
(9.0) |
(8.8) |
|
Operating profit |
|
10.7 |
7.7 |
|
|
|
|
|
|
Other losses |
|
(0.3) |
(0.6) |
|
Other income |
5 |
0.6 |
- |
|
Finance costs |
6 |
(0.2) |
(0.2) |
|
Finance income |
6 |
0.4 |
0.9 |
|
Profit before tax |
|
11.2 |
7.8 |
|
|
|
|
|
|
Taxation |
8 |
(4.2) |
(4.4) |
|
Profit from continuing operations |
|
7.0 |
3.4 |
|
|
|
|
|
|
Profit from discontinued operations (attributable to equity holders of NIOX Group plc) |
7 |
- |
0.3 |
|
|
|
|
|
|
Profit for the year |
|
7.0 |
3.7 |
|
|
|
|
|
|
Other comprehensive income/ (expense) |
|
|
|
|
Items that may be reclassified to profit or loss |
|
|
|
|
Exchange differences on translation of foreign operations |
|
5.5 |
(4.2) |
|
Other comprehensive income/ (expense) for the year, net of tax |
|
5.5 |
(4.2) |
|
Total comprehensive income / (expense) for the year |
|
12.5 |
(0.5) |
Earnings per share attributable to owners of the parent during the year
(expressed in pence per share)
|
|
|
2025 |
2024 |
|
Basic earnings per share |
Notes |
Pence |
Pence |
|
Basic earnings per share for profit from continuing operations |
9 |
1.69 |
0.81 |
|
Basic earnings per share for profit for the year |
9 |
1.69 |
0.88 |
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
Diluted earnings per share for profit from continuing operations |
9 |
1.64 |
0.76 |
|
Diluted earnings per share for profit for the year |
9 |
1.64 |
0.83 |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Consolidated statement of financial position
as at 31 December 2025
|
|
|
2025 |
2024 |
|
|
Notes |
£m |
£m |
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
0.3 |
0.3 |
|
Right-of-use assets |
|
0.9 |
1.4 |
|
Goodwill |
10 |
4.8 |
4.3 |
|
Intangible assets |
|
23.8 |
23.5 |
|
Deferred tax assets |
|
15.5 |
17.8 |
|
|
|
45.3 |
47.3 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
5.0 |
4.0 |
|
Trade and other receivables |
|
6.0 |
6.2 |
|
Cash and cash equivalents |
|
19.9 |
10.9 |
|
|
|
30.9 |
21.1 |
|
Total assets |
|
76.2 |
68.4 |
|
Equity |
|
|
|
|
Share capital |
|
0.3 |
0.3 |
|
Share premium |
|
0.3 |
0.2 |
|
Other reserves |
11 |
21.6 |
15.6 |
|
Retained earnings |
|
45.4 |
43.4 |
|
Total equity |
|
67.6 |
59.5 |
|
Liabilities Non-current liabilities |
|
|
|
|
Lease liabilities |
|
0.5 |
0.8 |
|
|
|
0.5 |
0.8 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
7.6 |
7.4 |
|
Lease liabilities |
|
0.5 |
0.7 |
|
|
|
8.1 |
8.1 |
|
Total liabilities |
|
8.6 |
8.9 |
|
Total equity and liabilities |
|
76.2 |
68.4 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Consolidated statement of cash flows
for the year ended 31 December 2025
|
|
|
2025 |
2024 |
|
|
Notes |
£m |
£m |
|
Cash flows from operating activities |
|
|
|
|
Cash generated from operations |
13 |
15.7 |
17.4 |
|
Interest paid |
|
(0.2) |
(0.1) |
|
Income taxes paid |
|
(0.1) |
(0.1) |
|
Net cash generated from operating activities |
|
15.4 |
17.2 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Proceeds from the sale of intellectual property |
|
0.3 |
- |
|
Payments for property, plant and equipment |
|
(0.2) |
- |
|
Payments for intangible assets |
|
(1.3) |
(1.0) |
|
Net cash used in investing activities |
|
(1.2) |
(1.0) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Interest received |
|
0.4 |
0.8 |
|
Principal element of lease payments |
|
(0.6) |
(0.5) |
|
Dividends paid |
|
(5.0) |
(4.2) |
|
Proceeds received from exercise of share options |
|
0.1 |
0.1 |
|
Acquisition of own shares |
|
- |
(21.0) |
|
Share buy-back transaction costs |
|
- |
(0.3) |
|
Net cash used in financing activities |
|
(5.1) |
(25.1) |
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
9.1 |
(8.9) |
|
Cash and cash equivalents at 1 January |
|
10.9 |
19.9 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
(0.1) |
(0.1) |
|
Cash and cash equivalents at 31 December |
|
19.9 |
10.9 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity
for the year ended 31 December 2025
|
|
|
Share capital |
Share premium |
Other reserves1 |
Retained earnings |
Total equity |
|
|
|
£m |
£m |
£m |
£m |
£m |
|
At 1 January 2024 |
|
0.3 |
0.1 |
18.2 |
65.2 |
83.8 |
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
3.7 |
3.7 |
|
Exchange differences on translation of foreign operations |
|
- |
- |
(4.2) |
- |
(4.2) |
|
Total comprehensive (expense)/ income |
|
- |
- |
(4.2) |
3.7 |
(0.5) |
|
Transactions with owners: |
|
|
|
|
|
|
|
Issue of new shares |
|
- |
0.1 |
- |
- |
0.1 |
|
Dividends |
|
- |
- |
- |
(4.2) |
(4.2) |
|
Employee share-based payments |
|
- |
- |
1.6 |
- |
1.6 |
|
Acquisition of own shares |
|
- |
- |
- |
(21.0) |
(21.0) |
|
Share buy-back transaction costs |
|
- |
- |
- |
(0.3) |
(0.3) |
|
At 31 December 2024 |
|
0.3 |
0.2 |
15.6 |
43.4 |
59.5 |
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
7.0 |
7.0 |
|
Exchange differences on translation of foreign operations |
|
- |
- |
5.5 |
- |
5.5 |
|
Total comprehensive income |
|
- |
- |
5.5 |
7.0 |
12.5 |
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
Issue of new shares |
|
- |
0.1 |
- |
- |
0.1 |
|
Dividends |
|
- |
- |
- |
(5.0) |
(5.0) |
|
Employee share-based payments |
|
- |
- |
0.5 |
- |
0.5 |
|
At 31 December 2025 |
|
0.3 |
0.3 |
21.6 |
45.4 |
67.6 |
1 Other reserves include share-based payments reserve, translation reserve, and transactions with non-controlling interests reserve
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS
1. General information
Basis of preparation
The preliminary announcement has been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards. It does not include all the information required for full annual accounts.
The financial information included in this announcement does not constitute the Company's statutory financial statements for the years ended 31 December 2025 or 2024 but is derived from those financial statements. Statutory financial statements for 2024 have been delivered to the registrar of companies, and those for 2025 will be delivered in due course. The auditors have reported on those financial statements; their reports were (i) unqualified (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The announcement for the year ended 31 December 2025 was approved by the Board for release on 23 March 2026.
The announcement will be published on the Company's website. The maintenance and integrity of the website is the responsibility of the directors. The work carried out by the auditors does not involve consideration of these matters. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
2. Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources, assessing performance and making strategic decisions, has been identified as the Chief Executive Officer.
The Chief Executive Officer examines the Group's performance from a product perspective, and has identified one reportable segment in the continuing business:
- NIOX® relates to the portfolio of products used to improve asthma diagnosis, monitoring and management by measuring fractional exhaled nitric oxide (FeNO).
The COPD business has been classified as a discontinued operation. Information about the results of this segment is provided in note 7.
The table below presents operating profit or loss information regarding the Group's operating segments for the years ended 31 December 2025 and 2024. Only the results for the Group's continuing activities are included to aid comparison.
Segment operating profit or loss
|
Year ended 31 December 2025 |
NIOX® |
Head office |
Total |
|
|
£m |
£m |
£m |
|
Revenue (from external customers, based on the destination of the customer) |
|
|
|
|
UK |
3.9 |
- |
3.9 |
|
US |
12.0 |
- |
12.0 |
|
EU |
12.4 |
- |
12.4 |
|
Asia Pacific |
18.3 |
- |
18.3 |
|
Rest of world |
2.1 |
- |
2.1 |
|
Total segment revenue |
48.7 |
- |
48.7 |
|
|
|
|
|
|
Cost of sales |
(15.0) |
- |
(15.0) |
|
|
|
|
|
|
Research and development costs |
(2.6) |
- |
(2.6) |
|
Sales and marketing costs |
(11.4) |
- |
(11.4) |
|
Administrative expenses |
(4.1) |
(4.9) |
(9.0) |
|
Operating profit/ (loss) from continuing operations |
15.6 |
(4.9) |
10.7 |
|
|
|
|
|
|
Depreciation and amortisation included above |
(4.1) |
- |
(4.1) |
|
|
|
|
|
|
Year ended 31 December 2024 |
NIOX® |
Head office |
Total |
|
|
£m |
£m |
£m |
|
Revenue (from external customers, based on the destination of the customer) |
|
|
|
|
UK |
3.7 |
- |
3.7 |
|
US |
9.8 |
- |
9.8 |
|
EU |
10.3 |
- |
10.3 |
|
Asia Pacific |
16.3 |
- |
16.3 |
|
Rest of world |
1.7 |
- |
1.7 |
|
Total segment revenue |
41.8 |
- |
41.8 |
|
|
|
|
|
|
Cost of sales |
(11.6) |
- |
(11.6) |
|
|
|
|
|
|
Research and development costs |
(2.5) |
- |
(2.5) |
|
Sales and marketing costs |
(11.2) |
- |
(11.2) |
|
Administrative expenses |
(3.9) |
(4.9) |
(8.8) |
|
Operating profit/ (loss) from continuing operations |
12.6 |
(4.9) |
7.7 |
|
|
|
|
|
|
Depreciation and amortisation included above |
(4.2) |
- |
(4.2) |
Assets by segment
|
As at 31 December 2025 |
NIOX® |
Total |
|
|
£m |
£m |
|
Cash and cash equivalents |
19.9 |
19.9 |
|
Property, plant and equipment |
0.3 |
0.3 |
|
Right-of-use assets |
0.9 |
0.9 |
|
Goodwill |
4.8 |
4.8 |
|
Intangible assets |
23.8 |
23.8 |
|
Deferred tax assets |
15.5 |
15.5 |
|
Inventories |
5.0 |
5.0 |
|
Trade and other receivables |
6.0 |
6.0 |
|
Total assets |
76.2 |
76.2 |
|
|
|
|
|
As at 31 December 2024 |
NIOX® |
Total |
|
|
£m |
£m |
|
Cash and cash equivalents |
10.9 |
10.9 |
|
Property, plant and equipment |
0.3 |
0.3 |
|
Right-of-use assets |
1.4 |
1.4 |
|
Goodwill |
4.3 |
4.3 |
|
Intangible assets |
23.5 |
23.5 |
|
Deferred tax assets |
17.8 |
17.8 |
|
Inventories |
4.0 |
4.0 |
|
Trade and other receivables |
6.2 |
6.2 |
|
Total assets |
68.4 |
68.4 |
3. Employees and directors
Monthly average number of people (including Executive and Non-Executive Directors) employed:
|
|
|
2025 Number |
2024 Number |
|
Office and management |
|
27 |
26 |
|
Sales and marketing |
|
64 |
62 |
|
Research and development |
|
4 |
3 |
|
Average headcount |
|
95 |
91 |
The Group's total headcount at 31 December 2025 was 97 (2024: 91).
Employee benefit costs
|
|
2025 £m |
2024 £m |
|
Wages and salaries |
9.1 |
9.2 |
|
Social security costs |
1.6 |
1.5 |
|
Pension costs |
0.5 |
0.5 |
|
Share option charge |
1.9 |
1.9 |
|
Total employee benefit costs |
13.1 |
13.1 |
Key management personnel
Key management personnel during the year included the Board of Directors, Regional VP of APAC, Senior VP of Americas and Research, VP of Supply Chain and Technical Operations, Regional VP of EMEA, VP of HR and Group Operational Finance Director. The composition of key management personnel changed during the year following the changes to the Board of Directors and the VP of HR's redundancy. The compensation paid or payable to key management is set out below:
|
|
2025 £m |
2024 £m |
|
Short-term employee benefits (including bonus) |
4.0 |
3.8 |
|
Termination payments1 |
0.1 |
- |
|
Share-based payment expenses |
1.7 |
1.7 |
|
Total key management remuneration |
5.8 |
5.5 |
1Termination payments in the year relate to redundancy costs associated with the VP of HR role.
4. Breakdown of expenses by nature
|
|
Notes |
2025 £m |
2024 £m |
|
Employee benefits costs |
3 |
13.1 |
13.1 |
|
Depreciation charge of property, plant and equipment |
|
0.2 |
- |
|
Depreciation charge of right-of-use assets |
|
0.5 |
0.5 |
|
Amortisation charge of intangible assets |
|
3.4 |
3.7 |
5. Other income
|
|
2025 |
2024 |
|
|
|
£m |
£m |
|
|
Royalty income |
0.3 |
- |
|
|
Gain on disposal of intellectual property |
0.3 |
- |
|
|
Total other income |
0.6 |
- |
|
During the year, NIOX sold certain legacy respiratory-related intellectual property and associated manufacturing equipment that had been acquired in 2015 as part of the acquisition of Prosonix Limited. In December 2025, cash proceeds of £0.3 million were received from this sale. The assets had previously been written down to a carrying value of nil. As a result, the full amount has been recognised as a one-time gain within other income, reflecting the non-recurring nature of this transaction.
Royalties relate to royalty income payable by Beyond Air of 5% of the net sales of the LungFit® PH device.
6. Finance costs and income
|
|
2025 |
2024 |
|
|
|
£m |
£m |
|
|
Finance costs: |
|
|
|
|
Bank charges |
(0.2) |
(0.1) |
|
|
Interest charges for lease liabilities |
- |
(0.1) |
|
|
Total finance costs |
(0.2) |
(0.2) |
|
|
|
|
|
|
|
Finance income: |
|
|
|
|
Bank interest receivable |
0.4 |
0.8 |
|
|
Discount unwind on Beyond Air consideration |
- |
0.1 |
|
|
Total finance income |
0.4 |
0.9 |
|
7. Discontinued operations
Previously, the Group sold Tudorza® and Duaklir® in the United States, where it was indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease ("COPD"). The decision to treat the COPD business as discontinued was made on 9 April 2020 when it was announced that the development and commercialisation agreement with AstraZeneca relating to this business was terminating. There were no assets or liabilities classified as held for sale in relation to the discontinued operation.
|
Profit for the year |
|
2025 £m |
2024 £m |
|
||
|
Revenue |
|
- |
0.3 |
|
||
|
Profit from discontinued operations |
|
- |
0.3 |
|
||
|
|
|
|
|
|
||
|
Cash flow |
|
|
|
|||
|
Net cash outflow from operating activities |
|
- |
(0.8) |
|||
|
Net cash used in discontinued operations |
|
- |
(0.8) |
|||
Revenue relates to a revision of the rebate accrual based on information and claims received during the year and forward-looking assumptions as to the value of claims expected to be received in future financial years.
The cash outflow relates to the settlement of certain contractual liabilities, principally rebates and returns, that were accrued when the business was discontinued.
The total accrual recognised on the balance sheet relating to discontinued operations as at 31 December 2025 was £0.1 million (2024: £0.1 million).
8. Taxation
|
Income tax expense
|
2025 £m |
2024 £m |
|
Current tax |
|
|
|
Current tax on profits for the year |
(0.1) |
(0.1) |
|
Total current tax expense |
(0.1) |
(0.1) |
|
|
|
|
|
Deferred income tax |
|
|
|
Decrease in deferred tax assets |
(4.1) |
(4.3) |
|
Total deferred tax expense |
(4.1) |
(4.3) |
|
|
(4.2) |
(4.4) |
|
Income tax expense is attributable to: |
|
|
|
Profit from continuing operations |
(4.2) |
(4.4) |
Numerical reconciliation of income tax expense to prima facie tax payable
The tax expense (2024: expense) for the year is higher (2024: higher) than the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%). The differences are explained below:
|
|
2025 £m |
2024 £m |
|
Profit from continuing operations before tax |
11.2 |
7.8 |
|
Profit from discontinued operations before tax |
- |
0.3 |
|
Profit before tax |
11.2 |
8.1 |
|
Tax at the UK tax rate of 25.00% (2024: 25.00%) |
(2.8) |
(2.0) |
|
Tax effect of amounts which are not deductible (taxable) in calculating taxable income: |
|
|
|
Expenses not deductible for tax purposes |
(0.6) |
- |
|
Difference in overseas tax rates |
0.6 |
0.9 |
|
Employee share option plan |
2.7 |
(0.3) |
|
Tax losses for which no deferred income tax asset was recognised |
(4.1) |
(3.0) |
|
Tax expense for the year |
(4.2) |
(4.4) |
Tax losses
|
|
2025 £m |
2024 £m |
|
Potential tax benefit of unused tax losses for which no deferred tax asset has been recognised at 25% (2024: 25%) |
91.8 |
90.8 |
At 31 December 2025, the Group has tax losses to be carried forward of approximately £473.7 million (2024: £483.9 million). These can be utilised against future taxable profits with no restrictions, except as stated below. A proportion of these tax losses have been recognised as a deferred tax asset.
NIOX Group plc and NIOX Healthcare Limited had tax losses to be carried forward of approximately £197.2 million (2024: £176.1 million). These losses have no expiry date, however, the utilisation of these losses will be restricted to 50% of profits in excess of £5.0 million generated in the United Kingdom.
NIOX Inc. had federal tax losses to be carried forward of approximately £120.6 million (2024: £131.4 million). Federal losses generated after 1 January 2018 have no expiry date, however, the utilisation of these losses will be restricted to 80% of profits generated in the United States. Federal losses generated before 1 January 2018 expire after 20 years. NIOX Inc. also had state losses to be carried forward of approximately £80.8 million (2024: £89.5 million) which have been generated across multiple states and have a range of expiry periods from 5 to 20 years.
The gross amount and expiry dates of losses available for carry forward are as follows:
|
|
Expiring within 5 years |
Expiring beyond 6 years |
Unlimited |
Total |
|
As at 31 December 2025 |
£m |
£m |
£m |
£m |
|
Losses for which a deferred tax asset is recognised |
- |
- |
96.3 |
96.3 |
|
Losses for which no deferred tax asset is recognised |
0.3 |
117.4 |
257.7 |
377.4 |
|
Total |
0.3 |
117.4 |
356.0 |
473.7 |
|
|
|
|
|
|
|
As at 31 December 2024 |
|
|
|
|
|
Losses for which a deferred tax asset is recognised |
- |
- |
108.4 |
108.4 |
|
Losses for which no deferred tax asset is recognised |
2.3 |
129.1 |
244.1 |
375.5 |
|
Total |
2.3 |
129.1 |
352.5 |
483.9 |
9. Earnings per share
|
Basic earnings per share |
2025 Pence |
2024 Pence |
|
From continuing operations |
1.69 |
0.81 |
|
From discontinued operations |
- |
0.07 |
|
Total basic earnings per share attributable to the ordinary equity holders of the Company |
1.69 |
0.88 |
|
Diluted earnings per share |
|
|
|
From continuing operations |
1.64 |
0.76 |
|
From discontinued operations |
- |
0.07 |
|
Total diluted earnings per share attributable to the ordinary equity holders of the Company |
1.64 |
0.83 |
|
Reconciliation of earnings used in calculating earnings per share |
2025 £m |
2024 £m |
|
Basic and diluted earnings per share |
|
|
|
Profit attributable to the ordinary equity holders of the Company used in calculating basic and dilutive earnings per share: |
|
|
|
From continuing operations |
7.0 |
3.4 |
|
From discontinued operations |
- |
0.3 |
|
Profit used as the basis of calculating basic and diluted earnings per share |
7.0 |
3.7 |
The earnings used in calculating basic and diluted earnings per share are the same.
Adjusted basic earnings per share uses adjusted EBITDA which eliminates interest, tax, depreciation, amortisation and share-based payment expenses.
The comparatives have been restated to align with the adjusted EBITDA metric as the primary measure of performance.
|
Adjusted basic earnings per share |
2025
Pence |
2024 Restated Pence |
|
From continuing operations |
4.03 |
3.23 |
|
From discontinued operations |
- |
0.07 |
|
Total adjusted basic earnings per share attributable to the ordinary equity holders of the Company |
4.03 |
3.30 |
|
Weighted average number of shares used as the denominator |
2025 |
2024 |
|
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share |
414,168,243 |
418,211,904 |
|
Adjustments for calculation of diluted earnings per share: |
|
|
|
Share options1 |
11,912,490 |
29,247,771 |
|
Deferred shares2 |
134,961 |
745,898 |
|
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share |
426,215,694 |
448,205,573 |
Share options1
Options granted to employees are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required performance targets are expected to be met based on the Company's performance and to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share.
Deferred shares2
Rights to deferred shares granted to Executive Directors under the Group's short-term incentive scheme are included in the calculation of diluted earnings per share, assuming that all outstanding rights will vest. The rights are not included in the determination of basic earnings per share.
Treasury shares
The ten million treasury shares held by the Company in the prior year were not included in the calculation of the weighted average number of ordinary shares used as the denominator in calculating both basic and diluted earnings per share.
10. Goodwill
|
|
2025 £m |
2024 £m |
|
At 1 January |
|
|
|
Cost |
4.3 |
4.6 |
|
Net book amount |
4.3 |
4.6 |
|
|
|
|
|
Year ended 31 December |
|
|
|
Opening net book amount |
4.3 |
4.6 |
|
Exchange differences |
0.5 |
(0.3) |
|
Closing net book amount |
4.8 |
4.3 |
|
|
|
|
|
At 31 December |
|
|
|
Cost |
4.8 |
4.3 |
|
Net book amount |
4.8 |
4.3 |
Management considers there to be only one CGU, the NIOX® business. The carrying value of goodwill is allocated to the NIOX® CGU and was generated in June 2015 on the acquisition of Aerocrine. The value in use for the NIOX® CGU was calculated over a five-year period using a pre-tax discount rate of 17.2%. Cash flows over five years have been considered appropriate based on the product lifecycle. Cash flows beyond the five years were extrapolated using the estimated terminal growth rate below. The growth rate does not exceed the long-term average growth rate for the business. The discount rate used is pre-tax and reflects specific risks relating to the Group and uncertainties surrounding the cash flow projections.
The key assumptions used for the valuation of the NIOX® CGU are as follows:
|
Assumption |
Approach used to determine values |
|
Valuation basis |
Value in use |
|
Sales |
Based on past performance and management's expectations of market development. The growth rate for 2026-2030 reflects a more cautious growth rate than the historical Compound Annual Growth Rate. |
|
Gross margin |
Based on past performance and management's expectations for the future. |
|
Operating costs |
Management forecasts these costs based on the current structure of the business, adjusting for inflationary increases but not reflecting any future restructurings or cost-saving measures. |
|
Period of specified projected cash flows |
2025 - 5 years 2024 - 5 years |
|
Long-term growth rate |
Terminal growth rates are based on management's estimate of future long-term average growth rates. 2025 - 1% 2024 - 1% |
|
Pre-tax discount rate |
Reflects specific risks relating to the relevant segments and the countries in which they operate. 2025 - 17.2% 2024 - 15.7% |
Management have considered and assessed reasonably possible changes for other key assumptions and have not identified and instances that could cause the carrying amount of goodwill and intangible assets to exceed its recoverable amount.
11. Other reserves
|
|
Share-based payments reserve |
Translation reserve |
Transactions with non-controlling interests |
Total other reserves |
|
£m |
£m |
£m |
£m |
|
|
At 1 January 2024 |
17.4 |
6.9 |
(6.1) |
18.2 |
|
Employee share-based payments |
1.6 |
- |
- |
1.6 |
|
Exchange differences on translation of foreign operations |
- |
(4.2) |
- |
(4.2) |
|
At 31 December 2024 |
19.0 |
2.7 |
(6.1) |
15.6 |
|
Employee share-based payments |
0.5 |
- |
- |
0.5 |
|
Exchange differences on translation of foreign operations |
- |
5.5 |
- |
5.5 |
|
At 31 December 2025 |
19.5 |
8.2 |
(6.1) |
21.6 |
12. Dividends
|
|
|
|
|
|
|
2025 £m |
2024 £m |
|
|
Final dividend for the year ended 31 December 2024 of 1.25 pence (2023: 1 pence) per fully paid share - declared in 2025. |
5.0 |
- |
|
|
Final dividend for the year ended 31 December 2023 of 1 pence (2022: £nil) per fully paid share - declared in 2024. |
- |
4.2 |
|
In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of 1.55 pence per fully paid ordinary share (2024: 1.25 pence). The aggregate amount of the proposed dividend expected to be paid after the reporting date, out of retained earnings at 31 December 2025, but not recognised as a liability at year end is £6.5 million (2024: £5.0 million).
13. Cash generated from operations
Reconciliation of profit before tax to net cash generated from operations:
|
|
Notes |
2025 £m |
2024 £m |
|
Profit from continuing operations before tax |
|
11.2 |
7.8 |
|
Profit from discontinued operations before tax |
7 |
- |
0.3 |
|
Profit before tax |
|
11.2
|
8.1 |
|
Adjustments for: |
|
|
|
|
Finance income |
6 |
(0.4) |
(0.9) |
|
Finance costs |
6 |
0.2 |
0.2 |
|
Depreciation charge of right-of-use assets |
4 |
0.5 |
0.5 |
|
Depreciation charge of property, plant and equipment |
4 |
0.2 |
- |
|
Amortisation charge of intangible assets |
4 |
3.4 |
3.7 |
|
Employee share-based payments |
3 |
1.1 |
1.9 |
|
Net exchange differences |
|
(0.1) |
0.7 |
|
Changes in working capital: |
|
|
|
|
Decrease in trade and other receivables |
|
0.5 |
2.8 |
|
(Increase)/ decrease in inventories |
|
(0.7) |
0.5 |
|
Decrease in trade and other payables |
|
(0.2) |
(0.1) |
|
Cash generated from operations |
|
15.7
|
17.4 |
14. Related party transactions
There is no ultimate controlling party of the Group as ownership is split between the Company's shareholders. The most significant shareholders as at 31 December 2025 and 2024 are as follows:
|
|
Ownership interest |
|
|
Name |
2025 |
2024 |
|
Harwood Capital LLP* |
16.79% |
17.64% |
|
AstraZeneca plc |
15.82% |
16.61% |
|
* Harwood Capital LLP acts as investment manager to North Atlantic Smaller Companies Investment Trust plc
|
||
Under the AIM rules, the significant shareholders listed above are related parties. During 2024, NIOX Group plc purchased 22,637,554 Ordinary Shares from these related parties as part of the Tender Offer. The purchase price was 80 pence per share.
No transactions with related parties occurred during the years ended 31 December 2025 or 31 December 2024 as classified under IAS24.
15. Events occurring after the reporting date
Please refer to note 12 for details of the final dividend recommended by the directors, which will be paid after the reporting date.
16. Commitments
At the end of the reporting period, capital expenditure contracted for the NIOX PRO® development, but not recognised as a liability, is £nil (2024: £0.4 million).
17. Reconciliation of alternative performance measures
Total expenditure
Total expenditure excludes depreciation, amortisation and share-based payment expenses.
Total expenditure is an alternative performance measure and reconciles to the consolidated statement of comprehensive income as below:
|
|
2025
£m |
2024
£m |
|
Research and development costs |
(2.6) |
(2.5) |
|
Sales and marketing costs |
(11.4) |
(11.2) |
|
Administrative expenses |
(9.0) |
(8.8) |
|
Add back: |
|
|
|
Depreciation |
0.7 |
0.5 |
|
Amortisation |
3.4 |
3.7 |
|
Share-based payment expenses |
1.9 |
1.9 |
|
Total expenditure |
(17.0) |
(16.4) |
Adjusted EBITDA
Adjusted EBITDA excludes income and expenditures that might impact the quality of earnings, such as share-based payment expenses.
Adjusted EBITDA is an alternative performance measure and reconciles to operating profit as below:
|
|
2025
£m |
2024
£m |
|
Adjusted EBITDA |
16.7 |
13.8 |
|
Depreciation |
(0.7) |
(0.5) |
|
Amortisation |
(3.4) |
(3.7) |
|
Share-based payment expenses |
(1.9) |
(1.9) |
|
Operating profit |
10.7 |
7.7 |
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