Aptamer Group PLC

Full-Year Results for FY2023

By Elric Langton | 9 November 2023

I have a financial interest in Aptamer.

Aptamer Group’s financial year ending 30 June 2023 paints a challenging picture. Revenue plummeted to £1.8 million, starkly contrasting to the £4 million in 2022. The significant drop in top-line earnings signals a troubling year for the company, exacerbated by an enlarged adjusted EBITDA loss of £4.7 million compared to the prior year’s £1.7 million.

Financials: The financial results raise immediate liquidity concerns. A dramatic revenue fall coupled with a widened EBITDA loss suggests operational struggles.

The cash position at the year-end stood precariously at £200k, down from £6.7 million in 2022. Although the post-year-end equity placings injecting £3.5 million provide some respite, the declining cash flow underscores the urgency for a strategic pivot.

Reducing the cost base to £3.5 million pa is a necessary, albeit reactive, step towards stabilising the financial bleeding. Yet, it begs the question – at what cost to innovation and growth potential? Moreover, the net assets at year-end dramatically dropped to £300k, down from £8.1 million, raising alarms about the balance sheet’s resilience against further financial headwinds. The obvious question to ask myself…, have I bought in too early, or should I have even bothered? For me, Aptamer is a recovery punt on the management, a risk I am comfortable with. Given the nature of the risk, the punt does not involve over-exposure, even though I think the downside is mainly factored into the share price, subject to funding flippers.