Interim Results for Six Months Ended 30 June 2018

HORIZON DISCOVERY GROUP PLC

("Horizon", "the Group" or "the Company")

Interim Results for the Six Months Ended 30 June 2018

Accelerating revenue growth and prioritising core markets

Cambridge, UK, 17 September 2018: Horizon Discovery Group plc (LSE: HZD), a global leader in the application of gene editing and gene modulation technologies, today announces its interim results for the six months ended 30 June 2018.

Financial Highlights

·     Revenues on a like-for-like basis of £11.1 million (H1 17: £12.1 million), £12.0 million on a constant currency basis (excluding Dharmacon totalling £14.0 million)

·     Dharmacon revenue growth of 5.4% over prior half year period to £14.0 million (£15.3 million at constant currency) on a pro forma basis

·     Reported EBITDA loss before exceptional items² improved to £2.2 million (H1 17: £5.1 million)

·     Cash balance of £24.9 million (FY17: £28.1 million, H1 17: £4.8 million)

¹ Constant currency is included to show the effect of exchange rates on our reported revenues. This is calculated by applying the prior period's average monthly exchange rate to this period's results.

² EBITDA is calculated by adding back exceptional items of £1.6 million, depreciation of £1.7 million and amortisation of £2.3 million to the operating loss of £7.8 million. This demonstrates the operating performance of the Group.

Business Highlights (including post-period end)

·     Terry Pizzie appointed as Chief Executive Officer of the Group

·     Investment strategy implemented to prioritise core markets with highest growth potential

·     Two CRISPR screening agreements signed with major pharmaceutical companies, including AstraZeneca

·     £1.1 million site-wide Bioproduction licence signed with another major pharmaceutical company

Financial Outlook:

·     Strong start to trading in H2 2018

·     Revenues expected to be second half weighted consistent with previous years

·     Revenues slightly ahead of consensus expectations for FY 18

·     Negative EBITDA before exceptional items for H1 18 expected to be offset by positive EBITDA for H2 18

Terry Pizzie, Chief Executive Officer of Horizon Discovery, commented: "I am pleased to report a strong first half performance that saw significant revenue growth due to a robust contribution from the Dharmacon business. We have made a strong start to the second half of the year and, in combination with our sales being second half weighted, we expect revenues to be slightly ahead of expectations for the year. I am particularly pleased at the continued development of our major customer relationships, culminating in two new significant agreements already signed in the third quarter in the key growth area of CRISPR screening.

"Together with the Board and the leadership team, I am excited that we have taken the opportunity since my appointment to update and evolve Horizon's five-year investment strategy to prioritise and invest in a number of highly promising core growth areas of our business to enhance our market positioning. We are at the cutting edge of a rapidly changing market and of a significant opportunity as gene editing and gene modulation become embedded at an industrial scale into our customers' workflows." 

Analyst briefing today

An analyst briefing will be held at 12:00pm BST at the offices of Numis Securities Ltd., 10 Paternoster Sq., London, EC4M 7LT. There will be a simultaneous live conference call and the presentation will be available on the Group's website at www.www.rns.com.