3 Companies Rising on Good News for Tuesday 28th February 2023

Episode 1220,   Feb 28, 2023, 09:53 AM

3 Companies Rising on Good News for Tuesday 28th February 2023

1. Abingdon Health #ABDX - Trading Update

The Company has successfully transitioned its activities away from COVID-19 and is now operating as a fully integrated contract development and manufacturing organisation maintaining its full focus on lateral flow testing.

· Revenue of £1.1m for the 6 months to December 2022 (H1 2021: £1.7m) expected to be significantly improved in H2 2023 and FY 2023 revenues are expected to be materially higher than FY 2022 revenues of £2.8m.

· At 31 December 2022, the Company had £4.4m cash. Current cash is in line with the Board's expectations. The primary objective of the Board is to move the Company to a breakeven and cash flow positive position which it forecasts will be achieved in FY 2024.

2. Safestay #SSTY - Trading Statement

- Revenues ahead of market expectations, expected to be £19.0 million (2021: £6.4 million - trading restricted)

- Adjusted EBITDA is expected to be in line with market expectations of £5.9 million (2021: Loss of £1.0 million).

- This marks the return to a near-normal premium hostel market with further upside anticipated

- A key driver has been the improvement in average bed rate to £23.70 (2021: £19.70)

- Occupancy also increased significantly to 63% versus 35% in 2021

3. AO World #AO. - Trading Statement

Consistent with the themes set out in the trading statement issued on 10 January, we continue to see traction from the initiatives taken by the business to reduce costs and improve margins.

Accordingly, the Board now expects Adjusted EBITDA to be in a range of £37.5m to £45m for the full year, an increase to the previous guidance that we gave in January 2023.