Abingdon Health Revenue Rises 31% as Second Half Reaches Adjusted EBITDA Profitability

Abingdon Health's FY26 trading update at a glance

Abingdon Health PLC has reported a stronger finish to its 2026 financial year, with expected revenue growth of 31% and a move into adjusted EBITDA profitability during the second half.

The rapid diagnostics and med-tech services group expects total FY26 revenue, including grant-funded income, to reach £11.3 million. That compares with £8.6 million in FY25.

The second half was the main driver. Revenue in H2 increased by 63% compared with H1, helped by significant growth in Contract Development research and development revenues.

Here are the key disclosed figures:

Metric	FY26 update	Comparison
Total revenue, including grant-funded income	£11.3 million	£8.6 million in FY25
Revenue growth	31%	Year on year
H2 revenue growth	63%	Compared with H1
Adjusted EBITDA	Profitable in H2	Amount not disclosed
Cash	£2.9 million	£1.9 million at 30 June 2025
Reader sales moved into August	£0.5 million	Customer-requested delay

The figures remain subject to finalisation. Full-year results are expected in early October 2026.

The move into adjusted EBITDA profitability matters

The most important point is not simply that revenue increased. Abingdon Health says it progressed to adjusted EBITDA profitability in H2.

Adjusted EBITDA is a measure of operating performance before interest, tax, depreciation and amortisation, with Abingdon also excluding share-based payment charges and certain non-recurring items. It can provide a useful view of underlying trading, but it is not the same as statutory operating profit or positive free cash flow.

The announcement does not disclose the size of the H2 adjusted EBITDA profit. It also does not say whether Abingdon was profitable on this basis across FY26 as a whole.

Even with those qualifications, crossing into positive adjusted EBITDA during the stronger half of the year is a useful sign of operational progress. It suggests that higher activity is beginning to translate into improved underlying profitability, rather than revenue growth being absorbed entirely by the cost base.

Investors will now want to see whether that performance can be sustained through FY27.

Second-half momentum drove the revenue increase

Abingdon's H2 revenue was 63% higher than in H1, with the company pointing to significant growth in Contract Development revenues.

This work sits within Abingdon's contract development and manufacturing organisation, or CDMO, offering. The group supports customers with lateral flow product development, regulatory strategy, technology transfer and manufacturing.

The model is designed to cover the journey from an initial diagnostic test concept through to routine production. That breadth could allow Abingdon to generate revenue at several stages of a customer's development programme.

Management says CDMO contracts announced during the previous financial year provide a strong foundation for significant FY27 revenue growth. That is encouraging, although the trading update does not provide an FY27 revenue forecast, adjusted EBITDA target or expected contract contribution.

The latest performance builds on the progress discussed in Abingdon's FY25 revenue growth and contract wins update.

The delayed £0.5 million of sales adds useful context

The FY26 result was achieved despite £0.5 million of reader unit sales moving from H2 into August at the customer's request.

This is relevant because the delayed sales appear to reflect timing rather than a disclosed cancellation. If completed as rescheduled, they should fall into FY27 rather than FY26.

However, investors should avoid automatically treating the full £0.5 million as secured FY27 revenue until delivery and recognition are confirmed. The announcement does not disclose the associated margin, payment terms or whether any further conditions remain.

The delay also demonstrates how individual orders can affect reporting periods. For a business with FY26 revenue of £11.3 million, £0.5 million is meaningful, equating to around 4% of the reported total.

Cash improved, but cash generation is not yet clear

Abingdon finished FY26 with £2.9 million of cash, compared with £1.9 million at 30 June 2025.

A higher year-end cash balance provides the group with additional financial headroom as it invests in its operations. During FY26, spending included Abingdon Analytical and the build-out of manufacturing capability at Abingdon Health USA.

Management expects both investments to support future growth. The US operation is particularly important to the company's stated ambition of servicing more international customers, especially clients in the United States.

Still, the year-end cash figure does not reveal how much cash the underlying business generated or consumed. The update does not disclose operating cash flow, capital expenditure, debt, working-capital movements or the effect of any financing activity.

Those details should be important when the full-year accounts arrive. Adjusted EBITDA profitability is positive, but investors will also want evidence that growth can ultimately translate into sustainable cash generation.

What looks positive for investors?

Several elements of the update support the investment case:

• FY26 revenue is expected to rise by 31% to £11.3 million.
• H2 revenue was 63% higher than H1, showing a clear acceleration during the year.
• The group reached adjusted EBITDA profitability in H2.
• Cash increased to £2.9 million at the year end.
• £0.5 million of reader sales moved into August rather than being described as cancelled.
• Previously announced CDMO programmes are expected to support further FY27 growth.
• Investment in analytical services and US manufacturing could broaden Abingdon's capabilities and geographic reach.

Taken together, the update suggests that commercial momentum strengthened as FY26 progressed.

What should investors watch carefully?

There are also unanswered questions:

• The amount of H2 adjusted EBITDA profit was not disclosed.
• Statutory operating profit or loss was not disclosed.
• Full-year adjusted EBITDA was not disclosed.
• No FY27 financial guidance was provided.
• The margins attached to Contract Development growth were not disclosed.
• Cash-flow performance and investment requirements were not disclosed.
• The timing and recognition of the delayed £0.5 million order still need confirmation.
• All FY26 figures remain subject to finalisation.

These gaps do not undermine the progress reported, but they limit how confidently investors can assess the quality and durability of the improvement.

October's results need to confirm the quality of growth

Abingdon Health's trading update contains two clear milestones: revenue growth above 30% and adjusted EBITDA profitability in H2.

The next test is whether the full-year results confirm that the stronger second half represents a lasting improvement. Investors should focus on margins, operating cash flow, the cost of ongoing investment and any more precise guidance for FY27.

For now, the direction of travel is positive. Revenue accelerated, cash increased and the business reached underlying profitability in its stronger half. The remaining question is how quickly Abingdon can turn that momentum into consistent full-year earnings and cash generation.

The complete regulatory release is available in the original company announcement.