Positive underlying performance 
with strong growth in installed base and reduction in net debt

 

LONDON, UK, 9 October 2013 – Optos plc (LSE: OPTS), the leading medical retinal imaging company, today provides a pre-close trading update for the financial year ended 30 September 2013 (“FY13”), ahead of the publication of its Preliminary Results on 21 November 2013. All figures, which are reported in US dollars (US$), are unaudited.

During the year, we have made excellent progress. We have delivered a record year of product installations with over 1,270 new customers, equivalent to 25% growth in the installed base. We have also installed 1,145 Daytona devices in the year, at the upper end of our guidance of 1,000 to 1,200. We also announce today the signing of an important new US corporate account contract with Visionworks of America, Inc. (“Visionworks”), a wholly owned subsidiary of HVHC, Inc., for 100 Daytona devices. These will be delivered between September 2013 and August 2014 (please see the separate announcement made today).

Our financial performance in the second half of FY13 improved compared to the first half of the financial year. The growth in the installed base has helped grow second half revenues over the first half and we expect the full benefit of this will flow in future periods. Revenues for the year to 30 September 2013 are expected to be approximately US$158 million.

Profit Before Tax (PBT) pre-exceptional* for the full year is expected to be in line with market consensus**. We have been cash generative in the second half of FY13 and expect to report an improvement in net debt in the period to approximately US$40million at period end (vs US$55.8 million at the end of H1 FY13).

Roy Davis, CEO, commented:

“The key metrics for future financial performance have been highly encouraging this year. We have reported our strongest ever year of installations and Daytona is continuing to grow well. We are pleased to announce today the new Visionworks contracts for Daytona in North America which reflects the global potential that Daytona has with major chains. Overall I am pleased with the strong underlying business performance.”

*This excludes the OPKO royalty, exchange rate translation and restructuring costs. Agreement has been reached with OPKO to buy out the future royalty payments associated with the acquisition resulting in a partial release of the provision.

**Bloomberg estimate

Enquiries:

Optos plc Roy Davis, CEO Rob Kennedy, Interim CFO	Tel: 01383 843 300
FTI Consulting Ben Atwell / Simon Conway / Mo Noonan	Tel: 020 7831 3113

Note to Editors: Images available upon request

About Optos Plc

Optos plc has the vision to be The retina company. We aim to be recognised as a leading provider of devices and solutions to eyecare professionals for improved patient care. Optos' core devices produce ultra widefield, high resolution digital images (optomaps®) of approximately 82% of the retina, something no other device is capable of doing in any one image.

Optos has a range of imaging devices that support different customer segments and patient levels: the P200 and 200Dx devices are concentrated on wellness screening carried out by optometrists and ophthalmologists in primary care; the P200C devices are designed to meet the need for more exacting clinical imaging capabilities and standards in secondary care within the ophthalmology market and at optometric practices that are clinically managing a patient base with advanced ocular disease; and the P200MA and 200Tx devices supports ophthalmologists and retinal specialists in the medical care market.

Daytona represents the next generation of Optos ultra-widefield retinal imaging technology, and has been scaled to accommodate smaller office spaces while providing high resolution imaging, and adding new auto-fluorescence capabilities. Weighing only about 25 kg, Daytona’s new, ergonomic body is designed to increase patient comfort, as well as make it easier to correctly position the eye. In addition to the smaller, sleeker design, Daytona features an improved user interface with its intuitive, workflow based software. Daytona also offers “plug-n-play” installation, a modular robust build-design to simplify product support, image review capabilities and electronic image storage options. Daytona was designed to allow the globalisation of the core Optos imaging technology, giving the opportunity to offer the benefits of optomaps® technology to more eyecare professionals and their patients around the world.

The acquisition of OPKO instrumentation in October 2011 brought the group optical coherence tomography (“OCT”) diagnostic devices and optical ultrasound scanners, used in the diagnosis and management of eye disease and conditions. Optos’ widefield retinal imaging technology, combined with the specific data that can be derived from OCT images, has the potential to offer ophthalmologists and optometrists the most powerful tools for disease diagnosis and management. The optomaps® images provide enhanced clinical information which facilitates the early detection, management and treatment of disorders and diseases evidenced in the retina such as retinal detachments and tears, glaucoma, diabetic retinopathy and age-related macular degeneration. Retinal imaging can also indicate evidence of non-eye or systemic diseases such as hypertension and certain cancers. OCT delivers an image that shows a three dimensional, cross-sectional view of the retina in any particular area, typically in the central pole area of the retina around the optic nerve and macula and is used to detect the presence of and understand the severity of disease, determine treatment approaches and monitor post-treatment effect. As part of the consideration for the acquisition, Optos agreed to pay royalty payments based on future revenues.

Our expanded product range now includes ultra-widefield imaging, OCT, visual acuity, perimetry and treatment laser products.

For more information please visit our website www.optos.com.

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.