Interim results for the 6 months ended 30 June 25
Summary by AI BETAClose X
02 September 2025
Oxford Nanopore Technologies plc
Interim results for the six months ended 30 June 2025
Strong first half performance across all regions and customer segments; full year guidance reaffirmed
Oxford Nanopore Technologies plc (LSE: ONT) ("Oxford Nanopore" or the "Group"), the company behind a new generation of molecular sensing technology based on nanopores, today announces its interim results for the six months ended 30 June 2025.
Gordon Sanghera, Chief Executive Officer, commented:
"We delivered a strong first half performance, with broad-based growth across all geographies and customer segments. Revenue grew ahead of expectations, driven by increasing demand in both Research and Applied markets and further adoption of our high-output PromethION platform by customers across a wide range of applications. We also made clear progress on our path to profitability, with improved EBITDA performance reflecting expanding gross profit and disciplined cost control.
"At the same time, we made good progress against our strategic priorities. We continued to innovate, enhancing our product performance and workflow simplification, while extending our multiomic capabilities to provide even richer genetic insights. We also entered into a new partnership with Cepheid to develop automated infectious disease sequencing solutions, while strengthening operations and refining our commercial strategy to target high-priority applications. With this momentum, we remain on track to deliver our 2025 guidance and are confident in our medium-term targets."
Summary financial performance[1]
|
£ million Unless otherwise stated |
H1 2025 |
H1 2024 |
Change reported |
Change CC[2] |
|
Revenue |
105.6 |
84.1 |
25.6% |
28.0% |
|
Gross profit |
61.4 |
49.5 |
24.0% |
|
|
Gross margin |
58.2% |
58.8% |
(60)bps |
|
|
Adjusted EBITDA[3] |
(48.3) |
(61.7) |
+13.4 |
|
|
Loss for the period |
(71.8) |
(74.7) |
+2.9 |
|
H1 Financial highlights
· Revenue of £105.6 million grew by 28.0% on a constant currency basis (CC), up 25.6% on a reported basis, ahead of expectations.
· Revenue growth delivered in all regions, led by APAC and EMEAI, up by 38.3% CC and 32.7% CC respectively year-on-year. Despite ongoing uncertainty in the US research environment, revenue in the Americas grew by 16.9% CC underpinned by increasing demand in Applied markets.
· Growth was delivered across all customer end markets; revenue grew by 52.9% in Clinical, 27.4% in Applied Industrial, 18.5% in BioPharma and 22.1% in Research.
· Revenue grew fastest across the PromethION product range[4] up 59.6% year-on-year. The MinION product range[5] declined by (3.1)% and Other revenue, which includes kits, services and other devices, grew by 14.2%.
· Gross margin decreased by 60 basis points (bps) to 58.2% (H1 2024: 58.8%). Underlying margin improvements +525bps were driven by targeted margin expansion initiatives and boosted by increased adoption of the new pricing model. However, these gains were offset by a one-off non-cash inventory charge in H1 of £3.3 million (-315bps), mix (-195bps) and currency headwinds (-80bps).
· Adjusted EBITDA improved year-on-year and sequentially to £(48.3) million, compared with £(61.7) million in H1 2024 and £(56.2) million in H2 2024. This was primarily driven by increased gross profits and disciplined control of the cost base. Adjusted operating costs were up 1.3% against H1 2024 but down by 2.2% compared to H2 2024.
· Reduction in loss year-on-year to £(71.8) million (H1 2024: £(74.7) million), reflecting the improvement in EBITDA loss.
· Strong balance sheet position; cash, cash equivalents and other liquid investments of £337.3 million[6] as at 30 June 2025, compared to £403.8 million as of 31 December 2024. Cash flow is improving driven by adoption of the new pricing model and a higher proportion of capex purchases by customers, which has reduced the cash impact from devices being leased to customers to £5.5 million in H1 2025 from £14.4 million in H1 2024.
H1 Operational and Strategic highlights
· Broad-based, diversified growth: Strong performance across all geographies and customer segments, driven by growing customer demand and adoption of the revised pricing model, underlining the resilience and diversity of the Group's revenue base.
o Research customers: Large research and national programmes advanced, with NIHR Bioresource scaling sequencing activity and UK Biobank completing its pilot phase. The PRECISE programme was completed in Singapore, delivering 10,200 genomes. Genomics England's Cancer 2.0 programme concluded, demonstrating utility in structural and epigenetic analysis. Adoption broadened across disease research, RNA, methylation and single-cell applications.
o Applied customers: Growth in Clinical markets was driven by broader adoption in oncology and rare disease, including expanded use in rapid CNS tumour classification, methylation-based tumour profiling and new data in paediatric leukaemia demonstrating improvements in detection, cost and turnaround times. BioPharma expanded quality control use cases, including deployment by a major European manufacturer, while Industrial markets saw wider use in synthetic biology.
· Clinical collaborations: New strategic partnership with Cepheid, a subsidiary of Danaher, to develop and commercialise automated infectious disease sequencing solutions.
· Innovation: Progress against 2025 goals, including improved basecalling performance, real-time methylation detection, simplified workflows for over 20 applications to support broader usage, enhanced direct RNA sequencing with multiplexing to support breakthrough science, and pioneering early progress in proteomics.
· Scientific publications: Approximately 2,000 peer-reviewed papers published in the first half (18,000 to date[7]), demonstrating the utility of Oxford Nanopore unique benefits and traction in scientific research, spanning cancer, human genetics and infectious disease, and demonstrating the potential for future diagnostic use.
· Operational excellence: Expanded manufacturing and logistics capacity and introduced next-generation automated flow cell lines and optimised processes to enhance product stability and scalability. Strengthened quality assurance to ISO 13485 standards to support future regulated product lines. Completed operational efficiency programme with ~5% reduction in workforce and other cost savings of a similar amount allowing for the reallocation of capital to high-priority growth areas.
· Strategic Planning and Execution: Refined Commercial Strategy identified high-priority opportunities in Applied and Research markets worth 13 to 14 billion USD, where Oxford Nanopore is well positioned to compete, underpinned by the unique features and benefits of the technology. Detailed, go-to-market strategies are being developed, supported by targeted product development and partnership initiatives. Further details on the refinement of the Corporate Strategy to be disclosed at future investor events in Q4 2025.
Updates post period end
· As announced, on 11 August, Gordon Sanghera will step down as Chief Executive Officer and from the Board by the end of 2026, after more than 20 years in the role. A search for a successor, to lead the next phase of growth and commercialisation, is underway.
· The Group also notes that co-founder Spike Willcocks has left the business after 20 years, during which he served as Chief Strategy Officer for four years. The commercial team will report to Nick Keher, CFO, on an interim basis.
FY25 and medium-term guidance on track:
· 2025 (no change): Revenue growth of 20-23% on a constant currency basis, gross margin of ~59%, and adjusted operating expense growth of 3-4%.
· Medium-term (no change): Expect to reach adjusted EBITDA breakeven in FY27 and be cash flow positive in FY28, driven by more than 30% revenue CAGR (FY24-FY27) at constant currency, gross margin above 62% in FY27, and disciplined operating expense growth of 3-8% (FY24-FY27).
See the business review section for further detail.
Presentation of results
Management will host a conference call and webcast today, 2 September, at 8:30am BST. For details, and to register, please visit https://nanoporetech.com/about-us/investors/reports. The webcast will be recorded and a replay will be available via the same link shortly after the presentation. For further details please contact ir@nanoporetech.com
-ENDS-
For further information, please contact:
Oxford Nanopore Technologies plc
Investors: ir@nanoporetech.com
Media: media@nanoporetech.com
Teneo (communications adviser to the Group)
Tom Murray, Jo Blackshaw, Lisa Jarrett-Kerr
+44 (0) 20 7353 4200
OxfordNanoporeTechnologies@teneo.com
About Oxford Nanopore Technologies plc:
Oxford Nanopore Technologies' goal is to bring the widest benefits to society through enabling the analysis of anything, by anyone, anywhere. The Group has developed a new generation of nanopore-based sensing technology that is currently used for real-time, high-performance, accessible, and scalable analysis of DNA and RNA. The technology is used in more than 125 countries, to understand the biology of humans, plants, animals, bacteria, viruses and environments as well as to understand diseases such as cancer. Oxford Nanopore's technology also has the potential to provide broad, high impact, rapid insights in a number of areas including healthcare, food and agriculture.
For more information please visit: www.nanoporetech.com
Forward-looking statements
This announcement contains certain forward-looking statements. For example, statements regarding expected revenue growth and profit margins are forward-looking statements. Phrases such as "aim", "plan", "expect", "intend", "anticipate", "believe", "estimate", "target", and similar expressions of a future or forward-looking nature should also be considered forward-looking statements. Forward-looking statements address our expected future business and financial performance and financial condition, and by definition address matters that are, to different degrees, uncertain. Our results could be affected by macroeconomic conditions, delays or challenges in manufacturing or delivering of products to our customers, suspensions of large projects and/or acceleration of large products or accelerated adoption of pathogen surveillance or applied uses of our products. These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements.
Operational and Strategic review
Execution of our strategy
Our growth strategy is built on three pillars: disruptive innovation, commercial execution, and operational excellence. These priorities are designed to drive sustainable long-term growth and expand our share across both Research and Applied markets.
In the first half of 2025, we refined our strategic planning process to ensure we prioritise and execute on high-priority opportunities that best leverage the unique features of Oxford Nanopore's technology. This process integrates perspectives from inside and outside the Group, enabling us to focus resources where we can create the greatest long-term value for stakeholders.
Through this work, and by refining our commercial strategy across a market exceeding $150 billion1, we have identified market segments with a potential value of up to $25 billion for Oxford Nanopore. Of this, $13 to $14 billion lies within high-priority areas that the Group is best positioned to capture, underpinned by the unique features and benefits of our technology. The Group is already actively targeting a number of these high-priority segments, where we have established customer and partner engagement. In others we are developing detailed go-to-market strategies - including focused in-house product development requirements and a tailored partnership strategy- to best capture these opportunities most effectively.
Looking forward, we expect the share of value represented by these high-priority segments to increase as we continue to innovate our platform in a targeted way, accelerating commercial conversion and value capture.
This strategic planning capability is becoming an increasingly important enabler of execution as we grow and adapt to evolving market conditions. The work underway will further refine our corporate strategy to support sustained long-term revenue growth, and we look forward to sharing outcomes at investor events in Q4 and in our 2025 annual report.
1 Source: DeciBio and company compiled estimates
Commercial execution
In the first half of 2025, we delivered strong revenue growth across all regions, and in particularly APAC and EMEAI. Revenue was generated from a diverse mix of customer segments, comprising Research (68%), BioPharma (7%), Clinical (13%), and Applied Industrial (12%).
Engagement continues to deepen across all segments, with notable momentum among Clinical, BioPharma and Industrial customers, where Oxford Nanopore's differentiated platform is increasingly being adopted to address limitations of existing technologies. Our expanding presence in applied markets combined with sustained research demand, reinforces the broad applicability of our technology across a growing customer base.
We continued to make good progress on our partnership strategy. In April, we announced a new strategic collaboration with Cepheid, a subsidiary of Danaher, to develop and commercialise a seamless end-to-end workflow that combines Cepheid's GeneXpert system for pre-sequencing sample and library preparation with Oxford Nanopore's rapid, information-rich molecular analysis platform. Cepheid are developing a simple, integrated workflow (GeneXpert-to-GridION) that can deliver results from bacterial samples in under eight hours-a workflow designed to help hospitals and clinical labs test for infections more quickly and efficiently.
EMEAI (Europe, Middle East, Africa and India)
Revenue in EMEAI was £44.6 million in the first half of 2025, representing 31% year-on-year growth (33% at constant currency), with strong performance across all subregions. Growth was driven by increased flow cell utilisation across an expanding installed base of high-output devices, alongside the continued scaling of large programmes in human genetics and rare disease.
Device revenue grew 53%, while consumables increased by 25%, driven by a 45% uplift in PromethION Flow Cell revenue. These utilisation gains were supported by enhancements to our service and support infrastructure, focused on reducing onboarding time, improving time-to-implementation, and optimising the customer experience.
In Clinical markets, revenue grew by more than 45% year-on-year, driven by broader adoption in oncology and rare disease. The Marie Curie Oncology Centre in Poland adopted Oxford Nanopore technology for genome analysis and methylation-based tumour profiling, which aims to replace short-read sequencing to access richer diagnostic insights. Adoption also continued to expand across Europe, with more sites using Oxford Nanopore for rapid CNS tumour classification-achieving turnaround times as short as 30 minutes. Similarly, the UK Health Security Agency (UKHSA) implemented direct RNA sequencing in its radiation response and cancer surveillance work, replacing PCR and legacy platforms with Oxford Nanopore's technology to enable detection of native RNA modifications and expanded transcriptomic analysis.
In rare disease, the European Long Read Innovation Network (ELRIN) advanced delivery of its 10,000-genome three-year programme, working towards a transition from short-read sequencing to Oxford Nanopore's platform, based on improved diagnostic yield and the ability to access native methylation data.
In Research markets, momentum continued across large-scale genetic disease programmes. The NIHR Bioresource 22,000 sample study is now sequencing more than 300 genomes per week, with approximately 10,000 completed to date. Our Cancer 2.0 programme with Genomics England concluded during the period, generating strong evidence of Oxford Nanopore's value in detecting structural variation and methylation signatures in specific cancer types. Meanwhile, the Rare Disease 2.0 programme is progressing toward the production phase and offers potential to resolve unsolved cases through Oxford Nanopore sequencing.
The UK Biobank programme also made strong progress, completing its implementation and pilot phase and remains on track to enter production phase by the end of 2025. Oxford Nanopore technology will be used to generate the first large-scale epigenetic dataset, analysing 50,000 UK Biobank samples to uncover molecular drivers of cancer, dementia, and other complex diseases. The resulting multi-omic data is expected to transform how genomic data is leveraged for insights are used in early disease detection, personalised treatments, and long-term health outcomes.
In the BioPharma segment, revenue grew more than 30% year-on-year, reflecting growing adoption of Oxford Nanopore technology for quality control applications. At a large European BioPharma customer, our technology now supports QC processes across seven production sites. The customer consolidated workflows previously reliant on mass spectrometry systems and traditional Sanger sequencing, selecting Oxford Nanopore for its ability to reduce hands-on time and minimise operator variability in non-genomic environments. In parallel, a leading BioPharma organisation successfully completed evaluation of our platform for mRNA QC applications.
In Applied Industrial markets, growth was driven by expanded use of Oxford Nanopore sequencing for plasmid workflows, including new deployments by service providers in Germany.
AMR (The Americas)
In the first half of 2025, revenue in the Americas was £36.0 million, representing growth of 14.2% year-on-year (16.9% at constant currency), despite continued uncertainty in the U.S. research funding environment. This performance was underpinned by strong momentum across our Applied markets, with particularly strong growth in Clinical applications, where revenue increased by more than 70% year-on-year.
Growth in the region was driven by both new customer acquisition and increased utilisation among existing accounts. PromethION Flow Cell revenue rose by approximately 40% year-on-year, reflecting broader adoption of high-throughput sequencing and demand across a wide range of applications. Customers continued to show strong interest in features such as adaptive sampling-a method that enables real-time enrichment of specific regions of the genome during sequencing by rejecting off-target regions-and methylation analysis, which provides insight into base modifications relevant to cancer and disease.
In the Research segment, revenue declined modestly as delayed funding and continued caution among U.S.-based laboratories weighed on project activity. Revenue from public health and government agencies, both included in the Research segment, declined significantly year-on-year, reflecting ongoing budgetary constraints at institutions such as the National Institutes of Health, with many laboratories having delayed hiring and postponed the start of new initiatives. However, revenue from academic institutions increased by double digits year-on-year. Average order sizes in the U.S. were significantly lower than in EMEAI, with federal accounts constrained by procurement thresholds that require additional approval processes. In this environment, we may be less impacted than peers due to the accessibility and affordability of our platform, and in the U.S., revenue from Applied markets now exceeds that of research-a structural shift in our customer base.
Clinical revenue growth was led by large PromethION device placements across key accounts, including marquee customers utilising the platform across a variety of genomic services, for microbiology research, and rare disease testing. We also saw progress in paediatric leukaemia care, where both St. Jude Children's Research Hospital and UNC Chapel Hill demonstrated the use of Oxford Nanopore sequencing to deliver real-time results for acute myeloid leukaemia, improving turnaround times and enabling faster and more cost-effective decision-making compared to the current standard of care. The paper, published in Nature, noted that 'whole genome nanopore sequencing with adaptive sampling has the potential to provide genomic classification of acute leukemia specimens with reduced cost and turnaround time compared to the current standard of care.'
Revenue from BioPharma customers increased double digits year-on-year, supported by growing adoption of GridION Q for biomanufacturing quality control workflows. We continue to see strong interest in our technology across BioPharma customers, particularly for applications requiring real-time, multi-attribute testing in regulated environments.
The Applied Industrial segment also delivered growth, led by our customer Plasmidsaurus. As that business continues to expand its microbial sequencing services, it has launched new workflows for adeno-associated virus (AAV) analysis-a critical vector in gene therapy development. In addition, Plasmidsaurus is expanding into RNA and large-genome plasmid sequencing, highlighting the increasing relevance of our platform in synthetic biology and industrial applications.
The Americas remain a strategically important region for Oxford Nanopore. We are seeing broadening use of our platform across Applied markets, and the rapid transition to capital purchase by U.S. accounts is improving our long-term value capture.
APAC (Asia Pacific)
Revenue in Asia Pacific was £24.9 million in the first half of 2025, representing growth of 35.1% year-on-year (38.3% at constant currency). Growth was driven by strong execution across the region, supported by the expansion of our distributor network and increased demand from key service providers.
We continued to see strong growth across key customers in the period, driven by the ability of Oxford Nanopore's platform to generate rich multiomic data-including epigenetic insights such as methylation-which is increasingly underpinning new research initiatives across the region. We also saw growing interest in both direct RNA and circular RNA protocols.
A notable contributor to first-half revenue was the successful delivery of the PRECISE programme in Singapore. In collaboration with a multi-party consortium, we completed 10,200 Oxford Nanopore human genomes on schedule, meeting all contractual quality metrics. This programme demonstrated our ability to deliver complex, high-volume sequencing projects across diverse populations and now serves as a model for future national-scale initiatives.
In China, we delivered double digit revenue growth despite continued end-use control restrictions, which remain a headwind and led to the loss of two significant opportunities where export licences could not be secured. As previously highlighted, in response to constraints introduced in 2024, we developed a combined PromethION 24 and data acquisition unit that meets de minimis export requirements. We continued to expand our commercial footprint, with new service providers adopting our technology for RNA sequencing, methylation analysis and single-cell applications. We also deepened our relationship with existing providers to support broader use of our platform across genetic testing and microbial workflows.
In Japan, Cancer Precision Medicine (CPM) adopted Oxford Nanopore sequencing following positive feedback from academic key opinion leaders and increased visibility of the unique features and benefits of our technology in official workshops and policy forums. This combination of scientific endorsement and policy engagement helped underpin CPM's decision to adopt the PromethION platform for high-throughput human disease research.
Looking ahead, we see a growing opportunity in clinical applications across Asia Pacific, particularly in whole genome sequencing, hereditary cancer, and infectious disease. We are building a healthy pipeline across key markets including Australia, New Zealand, Singapore and Hong Kong, where demand for clinical research and translational applications is supporting the next phase of growth.
Innovation
Our commitment to innovation remains central to our strategy, as we continue to deliver richer data, faster insights, and new capabilities across Research and Applied markets. In the first half, we made solid progress against our 2025 strategic priorities: expanding adoption in Applied markets, advancing our regulated product pipeline, simplifying the end-to-end user experience, improving product performance, and extending our multiomic capabilities.
Accelerating adoption with increasingly rich, high-performance multiomic data
We continued to improve the performance of our platforms. Our latest basecalling software, which converts raw signals into genetic data, has a clear development path to Q30 (99.9%) accuracy. In collaboration with academic partners, we released new software that allows more complete analysis of complex regions of the genome-an area of growing interest in health and disease research.
In addition, we have delivered improved performance and speed of methylation detection, with many of these now available in real-time on the instrument. This unmatched capability of detecting novel epigenetic markers will drive a new class of translational genomic tests in complex genetic disease and oncology applications.
At London Calling, our annual customer event, the team showed early data of an increased speed enzyme combined with improved flow cell buffers delivering up to 70% improvements in sequencing outputs on PromethION Flow Cells, significantly reducing the price of a genome. Making information rich genomes more accessible supports the move from legacy technologies to native DNA technologies, where additional value is generated. These improvements will be rolled out through beta programmes towards the end of the year.
Simplifying products and workflows to support broader usage
To support broader use of our technology, we continued to invest the simplicity and robustness of our instrument software, and our analysis platform EPI2ME. With over 20 key applications in areas such as single cell, human whole genome sequencing, infectious disease detection, cancer genetics, biomanufacturing QC and environmental monitoring, our teams can easily demonstrate the value of our platform in market areas with clear unmet needs which our technology can address.
These workflows can be automated, for further ease of use, on existing automation providers that we work with through our compatible products program, or on the ElysION instrument which is in Early Access.
Product development to enable adoption in Applied markets
In the first half, we adjusted our regulated product roadmap to focus on upgrading GridION Q, which will include the R10 and RNA chemistries for broader adoption with clinical and biomanufacturing QC customers. This upgrade also supports the roll out by the NHS Centres of Excellence for respiratory metagenomics. The GridION Q device is also expected to complete CE-IVD submission in the EU for regulated Clinical markets by the end of 2025 and will be available for specified partners only.
As part of this shift, we moved the planned launch of our regulated PromethION Q device to 2026, to include key chemistry upgrades that will deliver step-change performance and allow us to better meet customer needs.
Advancing direct RNA sequencing to support breakthrough science
Oxford Nanopore's platform is the only single platform capable of sequencing DNA, RNA and proteins directly. In the first half of 2025, we made strong progress in this area, including the development of a new, enhanced cDNA protocol (which analyses RNA by converting it into DNA) and the launch of an Early Access direct RNA multiplexing kit that allows up to 24 RNA samples to be analysed on a single flow cell-helping customers save time and reduce costs.
These updates are delivering industry-leading performance, supporting a growing number of BioPharma applications beyond mRNA Vaccine Quality Control, including drug discovery, sterility testing, and exploring tissue-specific RNA modifications.
Our direct RNA technology is already enabling important discoveries. In a recent study, three leading research groups used our direct RNA chemistry to observe real-time changes in RNA modifications in response to glucose levels-a finding that could help advance research and treatment discovery in diabetes and metabolic disease.
Pioneering proteomics with nanopores
Our longer-term innovation strategy includes expanding into the proteomics market. Proteins are the key functional molecules in the body and offer important insights into disease and biology. In H1, we made progress across several approaches: screening different protein variants, measuring the presence of disease-related proteins, and identifying full-length proteins. Closed early access programmes for some of these approaches are on track for launch by the end of 2025. In addition, early work on de novo protein sequencing has progressed, aimed at unlocking new frontiers in full-length, reference-free protein analysis on the platform.
This work reflects our goal to create a single platform that can analyse DNA, RNA and proteins together, providing a more complete picture of biology.
Operational excellence
In the first half of 2025, we made continued operational advances to support our long-term growth strategy and continued global expansion. We focused on strengthening our manufacturing capabilities, optimising logistics, and improving the customer experience across key markets.
A notable milestone was the relocation of our global fulfilment centre from Harwell to the new Spectrum facility in Abingdon. This upgraded site adds significant technical capacity and supports scalable innovation to meet growing demand. In Europe, we migrated our logistics operations to UPS Healthcare in Roermond, Netherlands, enabling 30% faster lead times and cutting average delivery times by 24 hours.
We also completed the discovery phase of our Salesforce transformation programme and established a new Customer Experience Centre of Excellence. This will significantly improve the way customers quote, order, and receive support - reflecting our commitment to service quality at scale.
On the manufacturing side, we achieved improvements to flow cell quality and production stability through process optimisation and better shipping protocols. We are also continuing to introduce next-generation automated flow cell assembly lines. These lines will deliver higher throughput while occupying less space - enhancing scalability, sustainability and reproducibility.
In parallel, we upgraded supplier audits and quality assurance practices in line with ISO 13485 standards to support our regulated product lines. We also expanded our ESG and compliance efforts across the global supply chain, including stronger onboarding and training for partners, and the introduction of a new KPI dashboard to track performance and reinforce best practices.
During the period, we also delivered an operational efficiency programme that reduced our workforce by approximately 5%, and we are on track to reduce planned non-headcount related spend by approximately 5% this year. Importantly, this capital is being redirected to high priority growth areas.
These developments mark a step-change in Oxford Nanopore's operational strength and readiness for future growth, innovation, and customer success.
Outlook
FY25 guidance (no change):
Revenue is expected to grow by 20-23% on a constant currency basis, reflecting strong demand across the business while factoring in risks from US Federal funding, particularly at the National Institutes of Health, and tighter export control restrictions in China. Gross margin is expected to be around 59%, supported by operational improvements and the new pricing model, partially offset by the one-off inventory charge. Adjusted operating expenses are anticipated to grow by approximately 3-4%.
Medium-term guidance (no change):
Progressing towards profitability remains a key focus, with the Group expecting to reach adjusted EBITDA breakeven in FY27 and become cash flow positive in FY28. This is underpinned by revenue growth of more than 30% CAGR between FY24 and FY27, driven by continued penetration in the Research market and expansion into BioPharma, Clinical and Applied Industrial segments; gross margin improvement to exceed 62% by FY27 through manufacturing efficiencies, volume growth, Applied-market penetration and the updated pricing model; and operating expense growth of 3-8% CAGR, reflecting disciplined investment and leveraging of existing infrastructure.
Financial review
Revenues include fluctuations in currency unless explicitly stated otherwise.
Certain numerical figures included herein have been rounded. Therefore, discrepancies in between totals and the sums may occur due to such rounding.
Performance Summary
In the first half of 2025, the Group delivered results ahead of expectations, with revenue of £105.6 million (H1 2024: £84.1 million), representing growth of 28.0% at constant currency (CC) and 25.6% on a reported basis.
The Group delivered strong growth across its diverse customer base, with Applied Markets showing particularly strong momentum: revenue grew by 52.9% in Clinical, 27.4% in Applied Industrial, and 18.5% in BioPharma. Research also performed well, with revenue up 22.1%. This growth reflects the meaningful progress we've made in expanding our presence and unlocking new opportunities across all Applied segments. Regionally, performance was led by APAC and EMEAI, with revenues increasing 38.3% and 32.7% respectively on a constant currency basis. Despite continued funding pressures in the US research environment, revenue in the Americas grew 16.9% CC, supported by increasing demand within Clinical end markets in particular.
The PromethION product range grew 59.6% year-on-year, driven by increasing flow cell utilisation across larger platforms (+61%), alongside increasing number of active devices . This performance was partially offset by continued softness in the MinION range, which declined 3.1% year-on-year as customers continue to favour PromethION as a platform for human sample projects and for increased scale. Looking ahead, increasing demand for GridION Q among BioPharma customers is expected to support the next phase of growth in the MinION segment.
Gross margin decreased by 60 basis points year-on-year to 58.2%. Targeted measures to improve gross margin progressed in line with expectations and were meaningfully enhanced by increased adoption of capex purchases by customers, leading to underlying improvements of 525bps. However, these initiatives were offset in H1 by a non-cash one-off charge taken in H1 related to inventory (£3.3 million, -315bps), alongside mix (-195bps) and currency headwinds (-80bps).
The Group reported an adjusted EBITDA loss of £(48.3) million reflecting continued progress on the path to profitability. This represented both a year-on-year and sequential improvement, supported by disciplined cost control and gross profit growth. Adjusted operating costs were broadly flat year-on-year, reflecting good cost control in the period and the restructuring to support reallocation of capital to higher ROI activities as previously highlighted. We continue to assess current and future investment plans with a focus on prioritisation and return on investment to support long-term profitability.
The Group remains well capitalised with £337.3 million in cash, cash equivalents and other liquid investments as at 30 June 2025 (FY 2024: £403.8 million). Cash flow conversion is improving driven by adoption of the new pricing model and a higher proportion of capex purchases by customers, which improves working capital dynamics as the cost of leasing devices to customers fell to £5.5 million in H1 2025 from £14.4 million in H1 2024.
Results - at a glance
|
£million |
H1 25 |
H1 24 |
Change (%) |
|
|
Revenue |
105.6 |
84.1 |
25.6% |
|
|
|
|
|
|
|
|
Gross profit |
61.4 |
49.5 |
24.0% |
|
|
Gross margin (%) |
58.2% |
58.8% |
(60)bps |
|
|
|
|
|
|
|
|
Operating loss |
(77.8) |
(77.0) |
1.0% |
|
|
Adjusted EBITDA |
(48.3) |
(61.7) |
+13.4 |
|
|
Loss for the period |
(71.8) |
(74.7) |
+2.9 |
|
|
|
|
|
|
|
|
£million |
30 June 2025 |
31 December 2024 |
Change (%) |
|
|
|
|
|
|
|
|
Cash, cash equivalents and other liquid investments2 |
337.3 |
403.8 |
(16.5)% |
|
2 Cash, cash equivalents and other liquid investments includes cash and cash equivalents and investment bonds.
Revenue by product range
Revenue grew fastest across the PromethION product range primarily driven by increasing customer flow cell utilisation. This helped offset softness in the MinION product range.
Revenue from the PromethION product range, representing all devices and flow cell sales from the PromethION range, grew 59.6% in H1 2025 reaching £51.1 million from £32.0 million in H1 2024. The increase is driven by strong growth across both PromethION Flow Cell and device revenues. Growth across the PromethION range was supported by increasing demand from customers such as Plasmidsaurus in AMR, PRECISE in APAC and Genomics England in EMEAI.
Revenues from the MinION product range, representing all sales of MinION Flow Cells and devices that run MinION Flow Cells (such as GridION and MinION) declined by 3.1% to £27.6 million (H1 2024: £28.5 million) due to a mix of factors primarily related to lower flow cell revenue and currency headwinds.
Other revenues, representing kits, service revenues and other devices grew 14.2% to £26.9 million (H1 2024: £23.6 million).
|
£million |
H1 25 |
H1 24 |
Change ( %) |
|
PromethION product range |
51.1 |
32.0 |
+59.6% |
|
|
|
|
|
|
MinION product range |
27.6 |
28.5 |
(3.1)% |
|
|
|
|
|
|
Other |
26.9 |
23.6 |
+14.2% |
|
|
|
|
|
|
Revenue |
105.6 |
84.1 |
25.6% |
Geographical trends
The Group aims to make its technology available to a broad range of scientific users, and currently supports users in more than 125 countries. In some territories the Group works with distributors to achieve or enhance its own commercial presence.
On a geographical basis, the strong revenue performance was driven by new and expanded contracts and increasing sales team productivity. Growth was led by APAC and EMEAI, up by 38.3% CC and 32.7% CC respectively year-on-year. Despite ongoing uncertainty in the US research environment, revenue in the Americas grew by 16.9% CC underpinned by increasing demand in Applied markets.
AMR revenue grew 14.2% to £36.0 million in H1 2025 (H1 2024: £31.6 million) driven primarily by growth in the US. APAC revenue grew 35.1% to £24.9 million in H1 2025 (H1 2024: £18.4 million) driven by large population genomics programmes in Singapore, Japan and Hong Kong and Indonesia, and increased revenue in China.
EMEAI revenue grew 31.0% to £44.6 million (H1 2024: £34.1 million) driven by new and expanded contracts delivering strong growth particularly in the UK and Europe.
|
£million |
H1 25 |
H1 24 |
Growth (%) |
Growth CC (%) |
|
AMR |
36.0 |
31.6 |
14.2% |
16.9% |
|
APAC |
24.9 |
18.4 |
35.1% |
38.3% |
|
EMEAI |
44.6 |
34.1 |
31.0% |
32.7% |
|
Revenue |
105.6 |
84.1 |
25.6% |
28.0% |
Revenue by Customer Type
Our H1 2025 revenues by customer end market (i.e. the end market of the customer or company buying our products) is as follows:
· 68% came from Research customers who are funded to research novel science such as academic research institutes, this category includes government, public health, grant funding and distributors. Revenue of £72.1 million was 22.1% above H1 2024 of £59.0 million, driven by growth in APAC and EMEAI.
· 12% came from Applied Industrial customers, who are utilising sequencing for application in industrial or service setting e.g. outsourced Synthetic Biology. Revenue of £12.9 million was 27.4% above H1 2024 of £10.1 million.
· 13% from Clinical customers where data may have diagnostic, prognostic or therapeutic value. Revenue of £13.0 million was 52.9% above H1 2024 of £8.5 million, driven by strong growth in AMR and EMEAI.
· 7% from BioPharma customers funded to develop, make, and sell pharmaceuticals. Revenue of £7.6 million was 18.5% above H1 2024 of £6.4 million.
|
£million |
H1 25 |
H1 24 |
Growth (%) |
|
Applied Industrial |
12.9 |
10.1 |
27.4% |
|
Clinical |
13.0 |
8.5 |
52.9% |
|
BioPharma |
7.6 |
6.4 |
18.5% |
|
Research |
72.1 |
59.0 |
22.1% |
|
Revenue |
105.6 |
84.1 |
25.6% |
Gross Margin
The Group's Gross profit of £61.4 million was up 24% compared to H1 2024. Gross margin was down slightly to 58.2% in H1 2025 from to 58.8% in H1 2024. Underlying margin improvements (+525bps) were driven by targeted margin expansion initiatives and boosted by increased adoption of the new pricing model. However, these gains were offset by a one-off non-cash inventory charge in H1 of £3.3 million (-315bps), mix (-195bps) and currency headwinds (-80)bps.
We remain committed to continual margin improvement across all products and will continue to invest in manufacturing innovation, to deliver this goal.
|
% |
H1 25 |
H1 24 |
Change |
|
Gross margin % |
58.2% |
58.8% |
(60)bps |
Impact of headcount
|
Average headcount (FTEs) |
H1 25 |
H1 24 |
Change (%) |
|
Research and development |
511 |
504 |
1.4% |
|
Production |
168 |
156 |
7.7% |
|
Selling, general & administration |
646 |
621 |
4.0% |
|
Total |
1,325 |
1,281 |
3.4% |
In H1 2025, the Group increased its average headcount by 3.4% from H1 2024. This increase was predominantly across the production and the commercial teams. The Group's manufacturing headcount has increased by 7.7% from H1 2024 with increases across production teams and supply chain to cater for increased demand from a growing client base.
The Group's average headcount in the selling, general and administration functions increased by 4.0% largely from expansion of the commercial teams in key geographic regions supports the Group's global business growth objectives.
During H1 2025 the Group entered into a targeted restructuring program, leading to a reduction in the overall workforce of around 5%, spread broadly evenly across R&D, Commercial and Corporate areas resulting in a total cash charge of £5.5 million over 2025 in relation to redundancy payments. The impact on the H1 2025 results of £4.2 million has been treated as an adjusting item in Adjusted EBITDA.
Research and development expenses
The Group's research and development expenditure is recognised as an expense in the period as it is incurred, except for development costs that meet the criteria for capitalisation as set out in IAS 38 (intangible assets). Capitalised development costs principally comprise qualifying costs incurred in developing the Group's core technology platform.
|
£million |
H1 25 |
H1 24 |
% Change |
|
Research and development expenses |
44.1 |
48.0 |
8.1% |
|
Adjusting Items |
|
|
|
|
Employers' social security taxes on pre-IPO share awards |
(0.1) |
1.5 |
|
|
Adjusted R&D Expenses |
44.0 |
49.5 |
11.1% |
|
Amortisation of capitalised development costs |
(12.9) |
(10.2) |
|
|
Capitalised development expenses |
20.1 |
15.3 |
|
|
Total R&D Expenses and Capitalised development expenses |
51.2 |
54.6 |
6.2% |
The Group's adjusted research and development expenses reduced by £5.5 million to £44.0 million in H1 2025 (H1 2024: £49.5 million). This was principally due to:
· The increase in capitalised development costs of £4.8 million to £20.1 million costs as projects reached an advanced stage of development and reflecting improvements and expansion to the suite of products offered. This included £13.0 million of staff costs and £7.1 million of third-party costs.
· a £3.0 million reduction in materials costs and a £0.8 million reduction in consultancy costs.
· This is partly offset by £2.7 million higher amortisation costs to £12.9 million for the period, and a £0.7 million increase from share-based payments and employers social security taxes on pre-IPO share awards.
Overall investment in research and development was £51.2 million (H1 24: £54.6 million); a decrease of £3.4 million.
Selling, general and administration costs
The Group's selling, general and administrative expenses increased by £16.6 million to £95.1 million.
|
|
H1 25 |
H1 24 |
% Change |
|
|
|
Selling, general and administrative expenses |
95.1 |
78.5 |
(21.1)% |
|
|
Adjusting items: |
|
|
|
|
|
Share based payments expense on Founder LTIP |
(2.0) |
(1.1) |
|
|
|
Employers' social security taxes on pre-IPO share awards Restructuring Costs |
(0.3) (4.2) |
4.1 - |
|
|
|
Adjusted selling, general and administrative expenses |
88.6 |
81.5 |
(8.7)% |
On an adjusted basis, selling, general and administrative expenses increased by £7.1 million in H1 2025 to £88.6 million (H1 2024: £81.5 million). The main changes were:
· The total increase in the average headcount in selling, general and administrative of 4.0%, this was primarily driven by our planned increase in headcount in the commercial teams resulting in a £4.1 million increase in payroll costs. Staff related costs were down £1.2 million. Other operating expenses were down £3.3 million.
· An exchange loss of £4.1 million primarily reflecting the impact of a weakening USD on our USD net monetary assets in GBP entities (H1 2024 credit of £0.4 million).
· Total share-based payment charge included in Selling, general and administrative expenses increased by £2.5 million in H1 2025 to £7.3 million compared to £4.8 million in H1 2024. The increase was primarily driven by an increase in the Founder LTIP charge (to £2.0 million in H1 2025 from £1.1 million in H1 2024).
Adjusted EBITDA
|
£million |
H1 25 |
H1 24 |
|
Loss from operations |
(77.8) |
(77.0) |
|
Depreciation and amortisation |
22.9 |
19.8 |
|
Share based payments expense on Founder LTIP |
2.0 |
1.1 |
|
Employers' social security taxes on pre-IPO share awards |
0.4 |
(5.6) |
|
Restructuring costs |
4.2 |
- |
|
Adjusted EBITDA |
(48.3) |
(61.7) |
Adjusted EBITDA losses reduced to £(48.3) million in H1 2025 from £(61.7) million in H1 2024. This was primarily driven by increased gross profits and disciplined control of the cost base.
Balance sheet
|
£million |
H1 25 |
FY 24 |
|
Property, plant and equipment |
64.4 |
66.3 |
|
Intangible assets |
51.5 |
43.8 |
|
Right-of-use assets |
33.5 |
34.9 |
|
Net deferred tax asset |
2.0 |
2.6 |
|
Working capital |
64.1 |
59.9 |
|
Other assets and liabilities |
22.8 |
28.2 |
|
Provisions |
(8.1) |
(7.2) |
|
Cash, cash equivalents and other liquid investments |
337.3 |
403.8 |
|
Lease liabilities |
(44.1) |
(46.0) |
|
Net assets |
523.4 |
586.3 |
Key elements of change in the balance sheet during the period comprised the following:
· The net book value of Property, plant and equipment was £64.4 million at 30 June 2025, a decrease of £1.9 million since 31 December 2024. This has been driven primarily by a £1.5 million reduction in the net book value of assets subject to operating leases to £33.2 million, from £34.7 million at 31 December 2024.
· Intangible assets of £51.5 million at 30 June 2025 has increased by £7.7 million from £43.8 million at 31 December 2024 as a result of additional projects having passed through the capitalisation criteria in the period.
· Working capital at 30 June 2025 of £64.1 million predominately reflects Inventory of £95.0 million (FY 2024: £99.5 million), trade and other receivables of £64.8 million (FY 2024 £62.7 million) and trade and other payables of £95.7 million (FY 2024 £102.3 million).
· Net decrease of £5.4 million in Other assets and liabilities is primarily due to the a £3.3 million reduction in the R&D tax credit recoverable and £1.5 million relating to unrealised fair value movements on investment bonds.
Cash flow
· Cash, cash equivalents and other liquid investments were £337.3 million at 30 June 2025, a decrease of £66.5 million since 31 December 2024. This was comprised of cash and cash equivalents of £194.1 million and investment bonds less fair value gains of £143.2 million.
· There was a net outflow from operating activities of £48.4 million (H1 2024 £59.9 million). This outflow included:
o An increase in working capital of £11.7 million included £5.5 million additions to assets subject to operating leases, a reduction from £14.4 million in H1 2024 as a result of increased adoption of capex purchases by customers. Payables also decreased by £7.3 million, compared to an increase of £12.5 million in H1 2024.
o Receipt of the R&D tax credit of £8.3 million (H1 2024: £4.9 million).
o H1 2025 cash payments of £5.2 million relating to redundancy and associated costs of the targeted restructuring programme (expected to be a total of £5.5 million in 2025).
· Net cash inflows from investing activities of £48.7 million (H1 2024: £4.3 million) included:
o The proceeds from sale of other financial assets of £67.0 million (investment bonds).
o Interest received of £4.2 million.
Partly offset by:
o The purchase of property, plant & machinery of £2.4 million.
o The capitalisation of development costs of £20.1 million.
· Net cash outflows from financing activities of £3.4 million (H1 2024: £2.0 million) included:
o Lease and interest payments of £4.4 million.
Partially offset by:
o Proceeds from the issue of shares of £1.0 million.
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2025
|
|
Note |
6 months to 30 June 2025 |
|
6 months to 30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Revenue |
4 |
105.6 |
|
84.1 |
|
Cost of sales |
|
(44.2) |
|
(34.6)
|
|
|
|
|
|
|
|
Gross profit |
|
61.4 |
|
49.5 |
|
|
|
|
|
|
|
Research and development expenses |
|
(44.1) |
|
(48.0) |
|
Selling, general and administrative expenses |
|
(95.1) |
|
(78.5) |
|
|
|
|
|
|
|
Loss from operations |
|
(77.8) |
|
(77.0) |
|
Finance income |
|
6.3 |
|
7.7 |
|
Finance expense |
|
(1.4) |
|
(2.0) |
|
Other gains and losses |
9 |
3.9 |
|
(0.1) |
|
|
|
|
|
|
|
Loss before tax |
|
(69.0) |
|
(71.4) |
|
Taxation |
7 |
(2.8) |
|
(3.3) |
|
|
|
|
|
|
|
Loss for the period |
|
(71.8) |
|
(74.7) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
Unrealised fair value gains on investment bonds |
|
2.4 |
|
1.1 |
|
Reclassification to profit or loss on disposal of investment bonds |
9 |
(3.9) |
|
- |
|
Fair value movements on investment bonds |
|
(1.5) |
|
1.1 |
|
Exchange losses arising on translation on foreign operations |
|
(0.3) |
|
(0.1) |
|
Tax on items that may be reclassified subsequently to profit or loss |
7 |
0.4 |
|
(0.3) |
|
|
|
|
|
|
|
Other comprehensive (loss)/income for the period, net of tax |
|
(1.4) |
|
0.7 |
|
|
|
|
|
|
|
Total comprehensive loss |
|
(73.2) |
|
(74.0) |
|
|
|
6 months to 30 June 2025 |
|
6 months to 30 June 2024 |
|
|
|
Pence |
|
Pence |
|
|
|
|
|
|
|
Loss per share |
6 |
(7.5) |
|
(8.7) |
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
|
|
Note |
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
8 |
64.4 |
|
66.3 |
|
Right of use assets |
|
33.5 |
|
34.9 |
|
Intangible assets |
|
51.5 |
|
43.8 |
|
Deferred tax assets |
7 |
2.0 |
|
2.6 |
|
Other financial assets |
9 |
12.7 |
|
74.3 |
|
|
|
164.1 |
|
221.9 |
|
Current assets |
|
|
|
|
|
Inventory |
10 |
95.0 |
|
99.5 |
|
Trade and other receivables |
|
64.8 |
|
62.7 |
|
Current tax assets |
7 |
0.9 |
|
1.2 |
|
R&D tax credit recoverable |
|
15.1 |
|
18.4 |
|
Other financial assets |
9 |
137.7 |
|
138.8 |
|
Cash and cash equivalents |
|
194.1 |
|
199.5 |
|
|
|
507.6 |
|
520.1 |
|
|
|
|
|
|
|
Total assets |
|
671.7 |
|
742.0 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Non‑current liabilities |
|
|
|
|
|
Lease liabilities |
|
38.3 |
|
40.6 |
|
Share-based payment liabilities |
|
0.1 |
|
0.2 |
|
Provisions |
11 |
3.9 |
|
3.4 |
|
|
|
42.3 |
|
44.2 |
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
95.7 |
|
102.3 |
|
Current tax liabilities |
7 |
0.3 |
|
- |
|
Lease liabilities |
|
5.8 |
|
5.4 |
|
Provisions |
11 |
4.2 |
|
3.8 |
|
Total liabilities
Net assets |
|
106.0 |
|
111.5 |
|
|
|
|
|
|
|
|
|
148.3 |
|
155.7 |
|
|
|
|
|
|
|
Net assets |
|
523.4 |
|
586.3 |
|
|
|
|
|
|
|
Issued capital and reserves attributable to owners of the parent |
|
|
|
|
|
Share capital |
12 |
0.1 |
|
0.1 |
|
Share premium reserve |
12 |
780.6 |
|
779.7 |
|
Share-based payment reserve |
|
218.5 |
|
209.1 |
|
Translation reserve |
|
(0.9) |
|
(0.6) |
|
Accumulated deficit |
|
(474.9) |
|
(402.0) |
|
|
|
|
|
|
|
Total equity |
|
523.4 |
|
586.3 |
The subsequent notes section forms an integral part of the condensed consolidated interim financial information.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
|
|
Share capital - see note 12 |
Share premium reserve - see note 12 |
Share-based payment reserve |
Translation reserve |
Accumulated deficit |
Total equity |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
At 1 January 2024 |
0.1 |
698.6 |
203.1 |
(0.2) |
(257.7) |
643.9 |
|
Loss for the period |
- |
- |
- |
- |
(74.7) |
(74.7) |
|
Other comprehensive (expense)/income |
- |
- |
- |
(0.1) |
0.8 |
0.7 |
|
Comprehensive loss for the period to June 2024 |
- |
- |
- |
(0.1) |
(73.9) |
(74.0) |
|
Issue of share capital |
- |
1.6 |
- |
- |
- |
1.6 |
|
Employee share-based payments |
- |
- |
7.2 |
- |
- |
7.2 |
|
Tax in relation to share-based payments |
- |
- |
(0.1) |
- |
- |
(0.1) |
|
Total contributions by owners |
- |
1.6 |
7.1 |
- |
- |
8.7 |
|
|
|
|
|
|
|
|
|
At 30 June 2024 |
0.1 |
700.2 |
210.2 |
(0.3) |
(331.6) |
578.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2025 |
0.1 |
779.7 |
209.1 |
(0.6) |
(402.0) |
586.3 |
|
Loss for the period |
- |
- |
- |
- |
(71.8) |
(71.8) |
|
Other comprehensive expense |
- |
- |
- |
(0.3) |
(1.1) |
(1.4) |
|
Comprehensive loss for the period to June 2025 |
- |
- |
- |
(0.3) |
(72.9) |
(73.2) |
|
Issue of share capital |
- |
0.9 |
- |
- |
- |
0.9 |
|
Employee share-based payments |
- |
- |
9.2 |
- |
- |
9.2 |
|
Tax in relation to share-based payments |
- |
- |
0.2 |
- |
- |
0.2 |
|
Total contributions by owners |
- |
0.9 |
9.4 |
- |
- |
10.3 |
|
|
|
|
|
|
|
|
|
At 30 June 2025 |
0.1 |
780.6 |
218.5 |
(0.9) |
(474.9) |
523.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS TO 30 JUNE 2025
|
|
Note |
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Net cash outflow from operating activities |
14 |
(48.4) |
|
(59.9) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(2.4) |
|
(4.8) |
|
Capitalisation of development costs |
|
(20.1) |
|
(15.3) |
|
Interest received |
|
4.2 |
|
5.1 |
|
Proceeds from sale of derivatives |
|
- |
|
0.1 |
|
Proceeds from sale of other financial assets |
|
67.0 |
|
19.2 |
|
|
|
|
|
|
|
Net cash inflow from investing activities |
|
48.7 |
|
4.3 |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from issues of shares |
|
1.0 |
|
1.6 |
|
Costs of share issues |
|
- |
|
(0.2) |
|
Principal elements of lease payments |
|
(2.9) |
|
(2.3) |
|
Interest paid on leases |
|
(1.5) |
|
(1.1) |
|
|
|
|
|
|
|
Net cash outflow from financing activities |
|
(3.4) |
|
(2.0) |
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents before foreign exchange movements |
|
(3.1) |
|
(57.6) |
|
Effect of foreign exchange rate movements |
|
(2.3) |
|
(0.9) |
|
Cash and cash equivalents at beginning of period |
|
199.5 |
|
220.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of period |
14 |
194.1 |
|
162.0 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO 30 JUNE 2025
1. General information
The condensed consolidated interim information for the period does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.
The summary of results for the year ended 31 December 2024 is an extract from the published Annual Report and Financial Statements which were approved by the Board of Directors on 18 March 2025, which has been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report on the Annual Report and Financial Statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under s498 (2) or (3) of the Companies Act 2006.
2. Significant Accounting Policies
2.1 Basis of preparation
The annual financial statements of Oxford Nanopore Technologies plc ("Oxford Nanopore" or "the Company") are prepared in accordance with United Kingdom adopted International Financial Reporting Standards. The condensed consolidated set of financial statements included in this half yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".
The condensed interim financial statements have been prepared in accordance with the accounting policies set out in the Annual Report and Financial Statements for the year ended 31 December 2024.
2.2 Going concern
As at 30 June 2025, the Group held £337.3 million in cash, cash equivalents and other liquid investments, as set out in note 5.
In order to satisfy the going concern assumption, the Directors review the performance of the Company against budget and forecast periodically, reflecting evolving market conditions. Specifically for this condensed consolidated interim information, the Directors have considered the budget and forecast prepared through to the end of September 2026, the going concern assessment period, and the impact of a range of severe, but plausible, scenarios on revenue, profit and cash flow. The principal issues and risks considered were:
• supply chain issues driven by demand, logistics interruptions and heightened global geopolitical tension;
• the impact on revenue due to customer, regulatory and research and development ("R&D") delays; and
• increased costs due to supply chain restrictions, rising utilities costs, rising wages & salary costs, additional R&D requirements and rising costs of component parts.
Under all scenarios, the Group had sufficient funds to maintain trading before taking into account any mitigating actions that the Directors could take. Accordingly, the Directors have a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and at least one year from the date of approval of this condensed consolidated interim information. On the basis of these reviews, the Directors consider it remains appropriate for the going concern basis to be adopted in preparing this condensed consolidated interim information.
3. Critical accounting judgements and sources of estimation uncertainty
In applying the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Critical judgements in applying the Group's accounting policies
The following are the critical judgements and estimates that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial information.
Judgements
i) Internally Generated Intangible Assets - research and development expenditure ("R&D")
Critical judgements are required in determining whether development expenditure meets the criteria for capitalisation of such costs as laid out in IAS 38, "Intangible Assets," in particular whether any future economic benefit will be derived from the costs and flow to the Group. The Directors believe that the criteria for capitalisation as set out in IAS 38, paragraph 57, for specific projects were met during the period and accordingly all amounts in relation to the development phase of those projects have been capitalised as an intangible asset. All other expenditure on R&D projects has been recognised within Research and development expenses in the income statement during the period.
Estimates
Key sources of estimation uncertainty
i) Inventory
The Group holds inventory across a number of locations for the purposes of fulfilling sales orders and contractual obligations. Additionally, certain components of inventory are held for use within research and development. Net inventory at 30 June 2025 was £95.0 million (31 December 2024: £99.5 million). In line with the requirements of IAS 2, "Inventories", inventory is stated at the lower of cost and net realisable value.
Management is required to make a number of estimates around the net realisable value of inventory, which represents the estimated selling price less all estimated costs of completion. In cases where the net realisable value is below cost, management records a provision such that inventory is held at the lower of cost and net realisable value.
To estimate the inventory provision, Management uses inputs based on the location and status of inventory held by the Group. This includes the intended use of the inventory, including whether it is expected to be sold or used for research and development purposes.
Management makes assumptions around the net realisable value of each category of inventory. These estimates are then applied to the inventory balance, based on its cost, location and intended use, to record a provision in cases where the net realisable value is below cost.
ii) Share-based payments
In June 2021, awards were granted to the Executive Directors of the Company under the Oxford Nanopore Technologies Limited Long-Term Incentive Plan 2021 ("Founder LTIP"). Half of the awards are subject to a non‑market revenue performance condition which drives the number of awards expected to vest depending on when certain revenue targets are met. At each reporting date, management makes an estimate as to the extent by which the revenue condition is to be achieved by the end of each future reporting period. This estimate is based on revenue forecasts. Whilst management may make an estimate of the future achievement of the annual revenue target on grant date, this estimate might change in future periods. If actual sales were 10% less than forecast by the end of the vesting period, the Group-recognised total expenses of £9.1 million relating to equity settled share-based payment transactions would decrease by £5.1 million. If actual sales were 10% more than forecast by the end of the vesting period, the Group-recognised total expenses of £9.1 million relating to equity settled share-based payment transactions would increase by £2.0 million.
Other sources of estimation uncertainty
iii) Internally generated intangible assets - research and development ("R&D")
Management consults with the relevant project leaders on a regular basis to understand and estimate the time spent on R&D projects in their development stage. When a percentage allocation has been agreed, this is then applied to other, non-employee related development costs to ensure that costs are consistently and appropriately capitalised. The net book value of internally generated capitalised assets at 30 June 2025 was £49.5 million (31 December 2024: £41.8 million).
Development costs capitalised in the six months to 30 June 2025 amounted to £20.1 million (six months to 30 June 2024: £15.3 million). If the estimated time spent on these projects had varied by up to 5% then the development costs capitalised in the first six months of 2025 would have been in the range of £19.1 million to £21.1 million (six months to 30 June 2024: £14.5 million to £16.1 million).
iv) Non-standard customer contracts
Revenue contracts for bundled goods and services require an allocation of the total contract consideration to each distinct performance obligation. The Group occasionally enters into larger bespoke agreements where stand-alone selling prices are not directly observable. In such cases, management applies estimation techniques using available market data, an expected cost-plus estimate at an appropriate margin, or a residual method to determine the allocation.
4. Segment information
Category
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Sale of goods |
|
90.5 |
|
71.6 |
|
Rendering of services |
|
9.9 |
|
8.1 |
|
Lease income |
|
5.2 |
|
4.4 |
|
|
|
|
|
|
|
Total revenue from contracts with customers |
|
105.6 |
|
84.1 |
The Group's senior management team is considered to be the Chief Operating Decision Maker ("CODM") for the purposes of resource allocation and assessment of segment performance, as defined under IFRS 8, "Operating Segments". The CODM considers that the only Group reportable segment is revenue generation from providing products and services for research use, including research and development expenditure and corporate expenditure.
5. Alternative performance measures
The Group's performance is assessed using a number of financial measures which are not defined under IFRS and therefore comprise alternative (non-GAAP) performance measures. These are as follows:
|
Metric |
Definition |
Rationale |
|
Revenue growth on a constant currency basis |
Revenue growth is calculated by adjusting current period revenue to prior period foreign exchange rates and determining the percentage difference from the prior period revenue. |
Helps evaluate growth trends, establish budgets and assess operational performance. |
|
Exceptional costs |
Significant unusual, infrequent, or non-recurring costs that do not comprise typical ongoing operating expenses that underpin long term value generation. |
Used in definitions below. |
|
Adjusted research and development expenses |
Research and development expenses after adjusting for Exceptional costs. In the periods presented, this reflected adjustment for restructuring costs and share-based payments expenses relating to share awards dating from before the Initial Public Offering ("IPO") in 2021, after adjusting for employer's social security taxes on pre-IPO share awards. |
This measure shows the underlying R&D expenditure by adjusting for one-off exceptional costs. |
|
Adjusted research and development and capitalised development costs |
Adjusted research and development costs (as defined above) adjusted for amortisation and amounts capitalised in the period. |
This measure shows the adjusted cash impact of R&D expenditure. |
|
Adjusted selling, general and administrative expenses |
Selling, general and administrative expenses after adjusting for Exceptional costs. In the periods presented, this reflected adjustment for restructuring costs and share-based payments expense relating to pre-IPO share awards (Founder LTIP), employer's social security taxes on Founder LTIP and pre-IPO share awards expensed. |
This shows the underlying selling, general and administrative expenses by removing the impact of one-off exceptional costs. |
|
Adjusted EBITDA |
Loss from operations adding back depreciation and amortisation and after adjusting Exceptional costs. In the periods presented, this reflected restructuring costs and share-based payments expense relating to (Founder LTIP), employer's social security taxes on Founder LTIP and pre-IPO share awards expensed. |
Adjusted EBITDA is used as a key profit measure because it shows the results of normal, core operations exclusive of income or charges that are not considered to represent the underlying operational performance and excludes one-off or intermittent exceptional items. |
|
Cash and cash equivalents and other liquid investments |
Total cash and cash equivalents, which comprise cash in hand, deposits held at call and other short-term highly liquid investments with a maturity of three months or less at the date of acquisition. Other liquid investments comprise investment bonds in which a fixed sum is invested in an asset-backed fund. |
Cash and cash equivalents and other liquid investments is a measure that shows underlying liquidity reserves. |
|
Gross profit % |
Gross profit divided by revenue. |
Helps evaluate profitability of core operations including cost management of production and pricing strategy effectiveness. |
The following table presents revenue growth on a constant currency basis:
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Revenue |
|
105.6 |
|
84.1 |
|
Growth |
|
25.6% |
|
|
|
Impact of foreign exchange |
|
2.0 |
|
|
|
|
|
|
|
|
|
Revenue on a constant currency basis |
|
107.6 |
|
|
|
Growth |
|
28.0% |
|
|
The following table presents adjusted research and development expenses:
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Research and development expenses |
|
44.1 |
|
48.0 |
|
Adjusting items: |
|
|
|
|
|
Employer social security taxes on pre-IPO share awards |
|
(0.1) |
|
1.5 |
|
|
|
|
|
|
|
Adjusted research and development expenses |
|
44.0 |
|
49.5 |
|
Amortisation of capitalised development costs |
|
(12.9) |
|
(10.2) |
|
Capitalised development costs |
|
20.1 |
|
15.3 |
|
|
|
|
|
|
|
Adjusted R&D expenses and capitalised development costs |
|
51.2 |
|
54.6 |
The following table presents adjusted selling, general and administrative expenses:
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
95.1 |
|
78.5 |
|
Adjusting items: |
|
|
|
|
|
Share-based payment expense on Founder Long Term Incentive Plan ("Founder LTIP") |
(2.0) |
|
(1.1) |
|
|
Employer social security taxes on Founder LTIP and pre-IPO share awards |
(0.3) |
|
4.1 |
|
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses |
92.8 |
|
81.5 |
|
|
Restructuring costs |
(4.2) |
|
- |
|
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses with restructuring costs |
|
88.6 |
|
81.5 |
In Q1 2025, the Group announced and concluded a targeted restructuring programme leading to a reduction in the overall workforce of approximately 5%, spread evenly across R&D, Commercial and Corporate functions, alongside other cost control measures of a similar size. An expense of £4.2 million was incurred in the period in respect of this, with a full year total cash charge of £5.5 million expected.
The following table presents the Group's Adjusted EBITDA, together with a reconciliation to loss from operations for the period:
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Loss from operations |
|
(77.8) |
|
(77.0) |
|
Depreciation and amortisation |
|
22.9 |
|
19.8 |
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
Share-based payments (Founder LTIP) |
|
2.0 |
|
1.1 |
|
Employer social security taxes on Founder LTIP and pre-IPO share-based awards |
0.4 |
|
(5.6) |
|
|
Restructuring costs |
|
4.2 |
|
- |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(48.3) |
|
(61.7) |
In order to reflect the core performance of the business, versus the definition presented in the financial statements of the Group for the year ended 31 December 2024, management has redefined Adjusted EBITDA to also exclude the impacts of other gains and losses as well as results from the associate. This is on the bases that neither of these items are included within profit or loss from operations, they are outside the direct control of management, and they relate to financing or investment activities. The results to 30 June 2024 have been restated to reflect this. Adjusted EBITDA for the six months to 30 June 2024 has been restated to a loss of £61.7 million (previously a loss of £61.6 million when including the impact of the associate).
The following table presents cash, cash equivalents and other liquid investments:
|
|
|
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
194.1 |
|
199.5 |
|
Investment bonds |
149.2 |
|
211.8 |
|
|
Less: fair value movements on investment bonds |
(6.0) |
|
(7.5) |
|
|
|
|
|
|
|
|
Cash, cash equivalents and other liquid investments |
|
337.3 |
|
403.8 |
6. Loss per share
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
Pence |
|
Pence |
|
Basic and diluted loss per share |
|
(7.5) |
|
(8.7) |
|
Total basic and diluted loss per share attributable to the ordinary equity holders of the Group from continuing operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
Earnings figure used in calculating earnings per share |
(71.8) |
|
(74.7) |
|
|
Loss attributable to the ordinary equity holders of the Group used in calculating basic and diluted loss per share from continuing operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
Number |
|
Number |
|
Weighted average number of shares used as the denominator |
|
957,978,311 |
|
861,556,494 |
|
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating basic and diluted earnings per share. |
|
|
|
|
Options
Options granted to employees under the Oxford Nanopore Technologies Share Option Scheme and the Oxford Nanopore Technologies Limited Share Option Plan 2018 are considered to be potential ordinary shares. These options have not been included in the determination of the basic and diluted loss per share as shown above, because they are anti-dilutive for the periods ended 30 June 2025 and 30 June 2024. These options could potentially dilute basic earnings per share in the future.
7. Taxation
i) Income tax recognised in profit or loss
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
Current tax |
|
|
|
|
|
Notional tax on R&D expenditure credit |
|
1.1 |
|
1.5 |
|
Tax payable on foreign subsidiaries |
|
0.6 |
|
0.4 |
|
|
|
|
|
|
|
Total current tax |
|
1.7 |
|
1.9 |
|
|
|
|
|
|
|
Deferred tax |
|
|
|
|
|
Prior period adjustment in respect of deferred tax |
|
0.7 |
|
- |
|
Origination and reversal of temporary differences |
|
0.4 |
|
1.4 |
|
|
|
|
|
|
|
Total deferred tax |
|
1.1 |
|
1.4 |
|
|
|
|
|
|
|
Total tax expense |
|
2.8 |
|
3.3 |
|
|
|
|
|
|
|
Income tax recognised in OCI |
|
|
|
|
|
Deferred tax on investment bonds |
|
(0.4) |
|
0.3 |
|
|
|
|
|
|
|
Tax on items that may be reclassified subsequently to profit or loss |
|
(0.4) |
|
0.3 |
Current tax balances have been calculated at the rates enacted for the period. The effective rate of corporation tax is -4.21% (30 June 2024: -4.62%) of the loss before tax for the Group.
ii) Current tax asset/(liability)
|
|
|
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Corporation tax asset |
|
0.9 |
|
1.2 |
|
Corporation tax liability |
|
(0.3) |
|
- |
|
|
|
|
|
|
|
|
|
0.6 |
|
1.2 |
iii) Recognised deferred tax balances
|
|
|
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
Deferred tax assets |
|
|
|
|
|
Provisions |
|
2.1 |
|
1.7 |
|
Losses |
|
14.1 |
|
12.8 |
|
Share awards (P&L) |
|
1.8 |
|
2.4 |
|
Share awards (equity) |
|
0.4 |
|
0.2 |
|
Other |
|
- |
|
0.4 |
|
|
|
|
|
|
|
Total recognised deferred tax assets |
|
18.4 |
|
17.5 |
|
|
|
|
|
|
|
Deferred tax liabilities |
|
|
|
|
|
Accelerated capital allowances |
|
(2.7) |
|
(2.8) |
|
Share awards (P&L) |
|
(0.2) |
|
(0.3) |
|
Investment bond unrealised gain |
|
(1.5) |
|
(1.9) |
|
Intangibles |
|
(12.0) |
|
(9.9) |
|
|
|
|
|
|
|
Total recognised deferred tax liabilities |
|
(16.4) |
|
(14.9) |
|
|
|
|
|
|
|
Net recognised deferred tax asset |
|
2.0 |
|
2.6 |
Deferred tax balances have been recognised at the rate expected to apply when the deferred tax attribute is forecast to be utilised based on substantively enacted rates at the balance sheet date. The rate of UK corporation tax increased to 25% from 1 April 2023. Taxation for other jurisdictions is calculated at the rates prevailing in the respective territories. £1.8 million (31 December 2024: £2.4 million) of the recognised net deferred tax asset relates to Oxford Nanopore Technologies, Inc., the US subsidiary, which is profitable.
In respect of share‑based payments, to the extent that the tax deduction (or estimated future tax deduction) exceeds the amount of the related cumulative IFRS 2 expense, the excess of the associated current or deferred tax has been recognised in equity and not in the consolidated statement of comprehensive income. For current tax the impact on the charge to the consolidated statement of comprehensive income is less than £0.1 million (31 December 2024: no impact). For deferred tax this increases the credit to the consolidated statement of comprehensive income by £0.2 million (31 December 2024: increase of less than £0.1 million).
A deferred tax asset of £4.8 million (31 December 2024: £5.5 million) has been recognised in relation to future share option exercises and other timing differences in Oxford Nanopore Technologies, Inc. and other overseas subsidiaries, because it is probable that the asset will be utilised in the foreseeable future as a result of taxable profits forecast in future years.
8. Property, plant and equipment
During the period, the Group made additions of £9.2 million to property, plant and equipment (six months ended 30 June 2024: £19.9 million). £5.5 million related to assets subject to operating leases, being devices leased to customers (six months ended 30 June 2024: £14.4 million). The depreciation charge for the period was £7.4 million (six months ended 30 June 2024: £6.7 million).
9. Other financial assets
|
|
|
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Investment bonds |
|
149.2 |
|
211.8 |
|
Other financial assets |
|
1.2 |
|
1.3 |
|
|
|
|
|
|
|
|
|
150.4 |
|
213.1 |
|
|
|
|
|
|
|
Current |
|
137.7 |
|
138.8 |
|
Non-current |
|
12.7 |
|
74.3 |
|
|
|
|
|
|
|
|
|
150.4 |
|
213.1 |
Under IFRS 9, "Financial Instruments", the investment bonds are classified as financial assets at Fair Value through Other Comprehensive Income ("FVOCI"). In the period to 30 June 2025, a £3.9 million profit was realised on disposal of investment bonds that was reclassified from Other Comprehensive Income to the Consolidated Income Statement.
10. Inventory
|
|
|
30 June 2025 |
|
31 December 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Raw materials |
|
32.6 |
|
37.6 |
|
Work in progress |
|
48.2 |
|
45.7 |
|
Finished goods |
|
14.2 |
|
16.2 |
|
|
|
|
|
|
|
|
|
95.0 |
|
99.5 |
The carrying amount of inventory was not materially different from its replacement cost.
11. Provisions
|
|
Dilapidation provisions |
|
Employer taxes |
|
Other |
|
Total |
|
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2024 |
2.4 |
|
4.7 |
|
0.1 |
|
7.2 |
|
Movements in provision for the period |
0.1 |
|
1.0 |
|
0.4 |
|
1.5 |
|
Payments |
- |
|
(0.6) |
|
- |
|
(0.6) |
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2025 |
2.5 |
|
5.1 |
|
0.5 |
|
8.1 |
|
|
|
|
|
|
|
|
|
|
Current |
- |
|
3.7 |
|
0.5 |
|
4.2 |
|
Non-current |
2.5 |
|
1.4 |
|
- |
|
3.9 |
|
|
|
|
|
|
|
|
|
|
At 30 June 2025 |
2.5 |
|
5.1 |
|
0.5 |
|
8.1 |
|
|
|
|
|
|
|
|
|
|
Current |
- |
|
3.7 |
|
0.1 |
|
3.8 |
|
Non-current |
2.4 |
|
1.0 |
|
- |
|
3.4 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
2.4 |
|
4.7 |
|
0.1 |
|
7.2 |
The dilapidation provisions relate to the leased properties, representing an obligation to restore the premises to their original condition at the time the Group vacates the related properties. The provision is non-current and expected to be utilised in between two and 20 years.
Employer social security taxes relate to the expected employer taxes on share-based payments. This is expected to be utilised in between one and ten years. The provision is based on the best estimate of the liability, which is reviewed and updated at each reporting period. The provision is accrued over the vesting period to build up to the required liability at the point it is ultimately due.
12. Share capital and share premium
This comprised the following, all being ordinary shares of £0.0001 each:
|
|
Number of shares issued |
|
Share capital |
|
Share premium |
|
|
No. |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
955,039,240 |
|
0.1 |
|
779.7 |
|
|
|
|
|
|
|
|
Issued under employee share schemes |
6,025,751 |
|
- |
|
0.9 |
|
|
|
|
|
|
|
|
At 30 June 2025 |
961,064,991 |
|
0.1 |
|
780.6 |
All issued shares are fully paid and there are no shares authorised but not in issue.
|
13. |
Share‑based payments |
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
Expense arising from share‑based payment transactions: |
|
|
|
|
|
Included in research and development expenses |
|
2.1 |
|
2.0 |
|
Included in selling, general and administrative expenses |
|
7.3 |
|
4.8 |
|
|
|
|
|
|
|
|
|
9.4 |
|
6.8 |
14. Notes to the statement of cash flows
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
194.1 |
|
162.0 |
Cash and cash equivalents comprised cash held at banks. The carrying amount of this asset was approximately equal to its fair value.
Adjustments reconciling loss before tax to net cash outflow from operating activities:
|
|
|
30 June 2025 |
|
30 June 2024 |
|
|
|
£m |
|
£m |
|
|
|
|
|
|
|
Loss before tax |
|
(69.0) |
|
(71.4) |
|
Adjustments for: |
|
|
|
|
|
Depreciation of property, plant and equipment |
|
7.4 |
|
6.7 |
|
Depreciation of right-of-use assets |
|
2.7 |
|
2.9 |
|
Amortisation of intangible assets |
|
12.9 |
|
10.2 |
|
R&D expenditure credit |
|
(6.2) |
|
(6.1) |
|
Loss on disposal of property, plant and equipment |
|
2.0 |
|
6.2 |
|
Foreign exchange movements |
|
3.4 |
|
0.3 |
|
Interest on leases |
|
1.4 |
|
1.9 |
|
Interest income |
|
(6.3) |
|
(7.7) |
|
Movement on investment bonds |
|
(3.7) |
|
- |
|
Non‑cash movements on derivatives |
|
- |
|
0.2 |
|
Losses relating to associated company |
|
- |
|
0.2 |
|
Employee share benefit costs including employer's social security taxes |
|
10.6 |
|
0.7 |
|
|
|
|
|
|
|
Operating cash flows before movements in working capital |
|
(44.8) |
|
(55.9) |
|
(Increase)/decrease in receivables |
|
(1.7) |
|
0.6 |
|
Increase in inventory and assets subject to operating leases |
|
(2.7) |
|
(21.5) |
|
(Decrease)/increase in payables |
|
(7.3) |
|
12.5 |
|
|
|
|
|
|
|
Cash used in operations |
|
(56.5) |
|
(64.3) |
|
Income taxes - R&D expenditure credit received |
|
8.3 |
|
4.9 |
|
Foreign tax paid |
|
(0.2) |
|
(0.5) |
|
|
|
|
|
|
|
Net cash outflow from operating activities |
|
(48.4) |
|
(59.9) |
15. Events after the reporting period
Following the completion of a competitive tender process in the period, including the participation of multiple firms who had access to management and data room materials, site visits and with a multi-stage structured evaluation, the Board has approved the reappointment of Deloitte LLP as the Group's statutory auditor. This decision is subject to shareholder approval at the 2026 AGM and coincides with the mandatory rotation of the audit partner. The formal competitive tender process has been undertaken in accordance with the Financial Reporting Council Minimum Standard and was overseen by the Audit and Risk Committee.
Gordon Sanghera has notified the Board of his intention to step down as Chief Executive Officer and from the Board by the end of 2026, after more than 20 years in the role. As part of a long-standing succession planning process, the Board has now commenced a formal search for a successor to lead the Company through its next phase of growth and commercialisation.
Oxford Nanopore has launched legal action against MGI Australia Pty Ltd. et al. ("MGI"), for infringing four of the Company's Australian patents following the announcement of the launch of its "Cyclone SEQ WT-02" in Australia. The decision to commence legal proceedings against MGI has been carefully considered and reflects the Company's responsibility to protect the intellectual property that underpins its sensing platform, which is now widely used across Research and Applied sectors in Australia.
[1] Certain numerical figures included herein have been rounded. Therefore, discrepancies between totals and the sums may occur due to such rounding.
[2] Constant currency (CC) applies the same rate to the H1 25 and H1 24 non-GBP results based on H1 24 rates.
[3] Adjusted EBITDA is a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. Adjusted EBITDA is the EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) adjusted for i) Share-based payment expense on founder LTIP ii) Employers' social security taxes on pre-IPO awards, and iii) Restructuring costs. In order to reflect the core performance of the business management has redefined Adjusted EBITDA to also exclude the impacts of Other gains and losses as well as Results from associates.
Adjusted EBITDA for the six months to 30 June 2024 has been restated to a loss of £61.7 million (previously a £61.6 million loss) and H2 2024 to a loss of £56.2 million (previously a loss of £54.5 million) - see note 5.
[4] The PromethION product range includes all PromethION devices (P2S, P2i, P24 and P48) and PromethION Flow Cells
[5] The MinION product range includes all MinION and GridION devices and MinION Flow Cells
[6] Cash, cash equivalents and other liquid investments includes cash and cash equivalents, and investment bonds
[7] Cumulative publications as at 30 June 2025. Note: The methodology for identifying and categorising publications has been transitioned to a new system that provides greater consistency, broader coverage and cost efficiencies, better supporting our ongoing needs. As a result of this change the prior year numbers have been restated. At 31 December 2024, cumulative publications totalled more than 16,000.
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