Chairman's Statement

Introduction

I am pleased to report a strong first half of the financial year ("H1 FY26") for Abingdon Health plc (the "Company") and its subsidiaries (together, the "Group" and the "Business") with total revenues, including grant-funded income, growing by 45% to £4.5 million (H1 FY25: £3.1 million). This performance reflects the significant strategic investments and commercial progress made over the past eighteen months and demonstrates the growing strength of our fully integrated, end-to-end CDMO, regulatory and analytical/performance evaluation service offering.

During H1 FY26 we successfully completed an equity fundraise in October 2025, raising £3.2 million net of expenses. These proceeds are being deployed to accelerate the expansion of our US operations in Madison, Wisconsin, including manufacturing fit-out and performance evaluation services, and to provide additional working capital to support the execution of our growing portfolio of major contracts. The Board remains focused on driving revenue growth and progressing towards a profitable and sustainable business, which we continue to target during calendar year 2026 with H2 FY26 anticipated to be profitable and operating cash flow positive. 

Strategy

Abingdon Health is a global developer, manufacturer and regulatory services provider for diagnostics and MedTech, with a speciality in lateral flow technology. It has facilities in York and Doncaster in the UK, and Madison, Wisconsin, in the USA.

Lateral flow is a powerful, rapid, flexible, on-site diagnostic technology which can be applied to both single and multiple biomarkers and used in a qualitative or quantitative format. The key benefits include ease of use, fast results, portability and low costs.

The Company's mission is to fast-track diagnostics and devices to improve lives. We seek to achieve this in three ways:

·    By providing our customers with a comprehensive lateral flow contract development and manufacturing service to bring their products to market in the most efficient and cost-effective way.

·    Through the provision of a comprehensive in vitro diagnostic (including lateral flow) and medical device/technology quality and regulatory services, and performance evaluation services, to accelerate market access for our customers.

·    Through the commercial distribution of a range of products in lateral flow format including self-test products branded Abingdon Simply Test^TM, retailer own-brand or private-label products.

Encouragingly, a number of Abingdon Health's customers are engaging with the Group across more than one of our service lines, and this integrated service proposition was strengthened by the acquisitions of regulatory service providers CS Lifesciences in August 2024 and IVDeology in May 2024. In December 2024 the Group invested in the opening of Abingdon Analytical Ltd at its Doncaster facility thereby providing performance evaluation services creating the technical data required to bridge between product development and regulatory approvals.

These strategic developments allow Abingdon Health to provide a comprehensive end-to-end service offering providing all the pieces of the jigsaw to enable customers to take a product idea from feasibility to launch and commercial success. The clear benefit for the customer is that they have one principal service provider who is proactively coordinating and project managing the various work streams in a cohesive and integrated manner to ensure the overall project is being driven in a cost effective and time efficient way.

Commercial and Operational update

Lateral Flow CDMO services

Abingdon Health provides its customers with an integrated lateral flow Contract Research Organisation ("CRO") and Contract Development and Manufacturing Organisation ("CDMO") service. Abingdon Health's contract service programme covers feasibility, optimisation, scale-up, technical transfer and manufacturing. In addition, we offer a range of other complementary services such as packaging design and kitting, regulatory advice including an initial regulatory approach plan through to validation and verification, documentation for regulatory submissions, and commercial support. Abingdon Analytical Ltd, based at the Company's Doncaster facility, provides performance evaluation and technical file data generation thereby providing a bridge between product development and regulatory submissions. The Group provides customers with all the services required to take their project from idea to large-scale manufacture, regulatory approval when required in jurisdictions covered by FDA, EU IVDR, UKCA and elsewhere and onto commercial success.

According to Precedence Research, the lateral flow assay market is expected to grow to $25.28 billion by 2035, with North America accounting for approximately 37% of the market.  Given the importance of the US market, Abingdon took a decision in 2024 to open a US CDMO site in Madison, Wisconsin, which was fully operational in April 2025 and has already secured a number of commercial development projects, including a cUS$2m contract win for a new USA-based customer for the development, scale-up and technical transfer for a semi-quantitative, multiplex lateral flow test system, announced in November 2025.

Abingdon Health USA Inc, based at the University Research Park in Madison, Wisconsin, is being overseen by Abingdon's co-founder, Chris Yates, as President of Abingdon Health USA, and also Chief Commercial Officer for the Group, and gives us access to US customers preferring or needing to transact with US suppliers, either because of grant funding requirements, or due to demand for 'Made in the USA' and the impact of import tariffs.  The initial focus of this US site has been on contract development services with small scale manufacturing but, following an equity placing in October 2025, which raised £3.2 million net of costs, we are now engaged in the expansion of lateral flow manufacturing in the USA from our Madison site to meet growing customer demand.

Our CDMO service and full-service offering proposition was further strengthened by the investment in opening Abingdon Analytical in Doncaster in December 2024. The Group has been providing analytical laboratory services since 2023 as part of its strategy to offer a comprehensive CDMO service that supports its customers in bringing products to market. The services of an analytical laboratory, including product stability testing, specificity, sensitivity, assessment of detection limits, interference, cross-reactivity testing, and method comparisons, make a significant contribution to a product's regulatory technical file, a key requirement for regulatory approval by FDA, EU IVDR, UKCA and other regulatory authorities. The inclusion of analytical laboratory services as part of the larger contract wins recently announced by the Company underlines the significant benefit of having development, manufacturing, regulatory, clinical trial support and performance evaluation under one roof within the Group.

Our lateral flow CDMO business has continued to develop strongly, underpinned by several significant contracts announced in calendar year 2025 secured on the back of the Group's end-to-end service offering.  Our latest $2.5m contract win announced on 12 March 2026, to provide project management and expert technical support for the development and regulatory submission of a clinical self-test, is a further example of the larger more integrated programmes the Company is engaged with.

We remain committed to our headquarters in York, UK, for the provision of CDMO services to our UK and European customer base whilst our US business in Madison, Wisconsin has been a key strategic focus during the period.

Following the October 2025 fundraise, we have accelerated the expansion of Abingdon Health USA from its initial opening as a laboratory and commercial office in April 2025, with manufacturing fit-out, additional equipment and the establishment of performance evaluation services all underway. We are also progressing towards ISO 9001 and ISO 13485 accreditation for the site.

The US operation is growing quickly, and we have recently recruited an additional six scientists to support the execution of currently secured projects. 

In note 4 to this interim report, we split CDMO revenue between contract development services and contract manufacturing. Contract development revenue in H1 FY26 was £1.4m (H1 FY25: £0.8m), or £1.7m (H1 FY25: £0.8m) when including UKRI funding for our malaria test development with the Institut de Pasteur and others (H1 FY25: £nil, as the project commenced in H2 FY25). The UKRI funding is presented within other operating income in the interim financial statements in accordance with IAS 20.  

Contract manufacturing revenue was £0.5m (H1 FY25: £0.5m).  Whilst our current focus is on growing our CDMO and regulatory revenues, we would expect the CDMO contracts to lead to growing manufacturing revenue in the future as these contracts complete the development, scale-up and regulatory phases and the products are commercialised. 

Whilst all CDMO contracts announced during 2025 are progressing well, we noted in our January 2026 trading update that Find Out From Home Inc, an existing US customer developing a range of at-home sexually transmitted infection tests, is currently fundraising and revenues previously anticipated in H1 and H2 of FY26 are now expected to be realised in FY27. Despite this, the Board remains confident in the revenue outlook for FY26.

Regulatory Services

Abingdon Health's regulatory service provision covers both the diagnostics market (including lateral flow and other in vitro diagnostics) and the wider medical device and medical technology market.  This division was strengthened by the acquisitions of CS Lifesciences in August 2024 and IVDeology in May 2024, which deepened Abingdon Health's in vitro diagnostic regulatory expertise and broadened our offering into the medical device, medical software and technology markets.

Our regulatory services division delivered a strong performance in H1 FY26 with revenues of £1.9 million (H1 FY25: £1.3 million), an increase of 49%, via the growing benefits of offering an integrated regulatory service alongside our CDMO and analytical capabilities, as well as an additional six weeks' contribution from CS Lifesciences compared to the prior period. 

The £1 million-plus contract for CS Lifesciences with a major global diagnostics company, first announced in January 2025, which covers quality management and regulatory approvals, continues to progress well. 

Lateral Flow Self-Test Products and Technology

The Company manufactures and sells a range of agritech lateral flow tests (Pocket Diagnostic® and a lateral flow device for the detection of the results of a PCR reaction).  In addition, the Abingdon Simply Test™ range of self-tests includes 16 products. Product revenues in H1 FY26 were £0.4 million (H1 FY25: £0.5 million).

We regard the sale of products alongside our CDMO customers as an additional shop window in support of our CRO and CDMO services. The core focus of the Company is contract research, development, manufacturing, regulatory and associated services. Sales of finished products under the Abingdon name will continue to be part of our suite of activities but the strategic focus is continued growth of the CRO and CDMO functions.

We continue to work on the development of sustainable product design solutions which can reduce the use of plastic for the lateral flow market. It is estimated that 20,000 tonnes of plastic waste is generated annually in the global market, and there is increasing customer interest in the use of sustainable alternatives to plastic. The Company has developed and launched prototype biobased housings made from sustainably cultivated red seaweed in both mid-stream urine format (as used for pregnancy and fertility testing) and in standard lateral flow cassette format. Following this development process, we recently announced the launch of a seaweed-based lateral flow housing in partnership with SymbioTex Ltd, which are now available for CDMO customers to utilise.

In addition, the use of smartphone technology, such as Abingdon's patented AI driven AppDx® (which is now available for commercial use), further adds to the development of use cases for lateral flow technology and provides additional tools to offer to our client base as part of the CDMO offering. During the period a new US patent was granted in July 2025, "Assay Reading Method" US 12,373,946 B2 to accompany those already granted in UK with patent numbers GB2583149B; GB2594939B and GB2601978B, and a new European patent with patent number EP4150565 was also announced. 

People

As at 31 December 2025, the Group's headcount was 129 (30 June 2025: 124), reflecting continued investment in our operations. Our people remain our most important asset and I am grateful for the dedication and commitment of the entire Abingdon Health team.

The Board and leadership changes announced during 2025, including the appointment of Tom Hayes as CFO in January 2025, Chris Yates, co-founder and formerly CEO, as President, Abingdon Health USA Inc. and Group Chief Commercial Officer in March 2025, and Dr Katie Brenner as a Non-Executive Director in April 2025, are working well as we execute our growth strategy.

I was also pleased to make two senior management appointments that reflect the growth and increasing complexity of our business.  Candice Vendettuoli has been promoted to Chief Delivery Officer, which includes programme management of our larger CDMO contracts, as well as her existing quality and regulatory affairs responsibilities. Natalie Thrush has also been promoted to Chief of Staff which reflects her broader remit across all Group business units. Both appointments reflect the depth of talent in the Company's senior team and a commitment to developing our people as the business grows. 

Financial Performance

Total revenues including grant-funded income grew by 45% to £4.5 million in H1 FY26 (H1 FY25: £3.1 million). Revenues as reported in the Group Statement of Comprehensive Income were £4.2 million (H1 FY25: £3.1 million), with the balance representing grant-funded income from the UKRI malaria project, presented within other operating income in accordance with IAS 20.

The strongest growth was in contract development services, where revenues increased by 91% to £1.4 million (H1 FY25: £0.8 million) or £1.7 million including grant-funded income as above, and in regulatory services, which grew 49% to £1.9 million (H1 FY25: £1.3 million). As noted above, a proportion of Find Out From Home (FOFH) contract development revenues that were anticipated in the second quarter were deferred as a result of FOFH's fundraising process; the underlying project remains active and those revenues are expected to be recognised in FY27.

Gross profit was £1.4 million (H1 FY25: £1.2 million), representing a gross margin of 33.3% (H1 FY25: 38.3%). The decrease in margin percentage reflects the continued growth of our regulatory services division, where consultancy staff costs are classified within cost of sales, and the customer/contract mix during the period. 

Administrative expenses were £4.1 million (H1 FY25: £4.0 million), reflecting continued investment in the Group's infrastructure, including the US site and the Doncaster analytical laboratory, together with investment in the senior team and additional headcount required to support forecast growth and to service our growing contract base. This is expected to support significant growth in the second half of the financial year and beyond, and we do not expect significant further infrastructure investment to be required for further growth.    

Adjusted EBITDA loss improved to £1.7 million (H1 FY25: £1.9 million), reflecting the benefit of revenue growth beginning to offset the increased investment in the business.   As detailed above, we expect significant further improvement in EBITDA in H2.  The loss before taxation was £2.3 million (H1 FY25: £2.6 million).

Cash and cash equivalents at 31 December 2025 were £3.7 million (30 June 2025: £1.9 million). The increase primarily reflects the £3.2 million net proceeds from the October 2025 equity fundraise, partially offset by cash outflows associated with continued investment in the business.  We expect H2 to be cashflow positive without the benefit of any further customer/contract wins.

Current Trading and Outlook

The Board remains confident in the outlook for the full year. The second half of the financial year is expected to deliver a stronger revenue performance than the first half, consistent with the seasonal weighting of our business in prior years and supported by the commencement and continued execution of several significant contracts secured during calendar year 2025.

We are maintaining our revenue guidance for FY26, including grant-funded income, in line with market expectations of £12.6 million (comprising £12.2 million of contract revenues and £0.4 million of grant-funded income). As noted above, the expected revenue from a contract with FOFH for performance evaluation, regulatory services and clinical testing of four sexually transmitted disease tests is now expected in FY27 as that business completes its fundraising process. Notwithstanding this adjustment, the Board remains confident in the overall FY26 revenue outlook, supported by the strong commercial pipeline that the Group is executing across its divisions.

On the basis of the Group's existing customer and contract base, the Board currently expects a positive adjusted EBITDA for H2 FY26, resulting in an overall FY26 EBITDA loss that shows a significant improvement against the FY25 adjusted EBITDA loss of £2.6 million. Investment in overheads made in the first half of the year is expected to support this profitable trading in H2 FY26.

Looking beyond FY26, the Board's outlook remains positive with growing visibility into FY27 . All of the major CDMO contracts announced during the current financial year are expected to be ongoing in July 2026, providing a strong foundation for continued revenue growth into the next financial year. The Group is well-positioned to build on this momentum through its integrated, end-to-end service offering and its growing international footprint.  The most recently announced $2.5m contract win as reported on 12 March 2026 to provide project management and expert technical support for the development and regulatory submission of a clinical self-test continues this theme of larger programmes of longer duration thereby aiming revenue visibility into FY27.

OTC Venture Market

I was pleased to announce recently that trading in the Company's ordinary shares will begin next month on the OTCQB Venture Market ("OTCQB") in the United States, under the ticker symbol "ABDXF", while continuing to trade on the London Stock Exchange's AIM market under the symbol "ABDX".  This will make our shares accessible to investors in the US having established our US operation in Madison, Wisconsin, as a key part of our growth strategy.   It also has the potential to increase liquidity on AIM by attracting a larger range of investors.

Conclusion

Abingdon Health enters the second half of FY26 in a strong position. We have built a differentiated, end-to-end service offering that is resonating with an international customer base and supporting us in winning and executing larger end-to-end CDMO contracts. We have a clear path to continued growth and profitability, a well-invested business in the UK and USA, and a strong pipeline of opportunities that extends into FY27 and beyond.

I would like to thank all our employees for their hard work, dedication and commitment as we continued to grow the business, and our shareholders for their continued support.

Dr Chris Hand

Executive Chairman

17 March 2026