Full year Trading Update and Notice of Results
OXB (LSE: OXB) has reported a robust trading update for the full year ended December 31, 2025, with revenues projected at £166-169 million, marking a 30% increase from £128.8 million in 2024. This performance aligns with the upper end of the company's guidance of £160-170 million, demonstrating the successful execution of its pure-play contract development and manufacturing organisation (CDMO) strategy. The anticipated operating EBITDA profitability is expected to fall within the mid-to-high single-digit million range, bolstered by a non-recurring gain from the acquisition of a viral vector manufacturing facility in Durham, North Carolina, completed in October 2025. Excluding this impact, the underlying operating EBITDA is expected to reflect low single-digit profitability, indicating a significant turnaround from a loss of £15.3 million in 2024.
The trading update is a continuation of OXB's strategic focus on expanding its capabilities and client base within the cell and gene therapy sector. The company has previously communicated its intent to enhance operational efficiency and increase capacity to meet growing demand, as evidenced by a £60 million equity raise in August 2025 and a new four-year loan facility of up to $125 million with Oaktree, of which $60 million has been drawn. This financial positioning not only strengthens OXB's balance sheet, with a gross cash position of £96.9 million and a net cash position of £55.4 million, but also provides the necessary liquidity to support ongoing growth initiatives. The contracted value of client orders has risen by 20% to £224 million, reflecting sustained demand and a growing revenue backlog of approximately £204 million as of December 31, 2025.
In the context of its peers, OXB operates in a competitive landscape of CDMO firms focused on cell and gene therapies. Direct peers include companies such as Oxford Biomedica (LSE: OXB), which has a similar focus on viral vector manufacturing, and other smaller-cap CDMOs like Celyad Oncology (NASDAQ: CYAD) and uniQure N.V. (NASDAQ: QURE), which are also involved in gene therapy development. These companies, however, differ in their specific operational focuses and market capitalisation, making direct comparisons nuanced. For instance, while Celyad has a market cap of approximately $100 million and is still in the clinical trial phase, uniQure has a more established product pipeline but operates at a higher market cap of around $1 billion. OXB's anticipated revenue growth and EBITDA profitability position it favourably against these peers, particularly given its strong revenue backlog and operational efficiency improvements.
The significance of OXB's trading update cannot be understated. The company is poised to continue its upward trajectory, with revenue growth expected to reach between £220-240 million in FY 2026, representing a further increase from the current year. The anticipated EBITDA margin exceeding 10% in FY 2026 and potential to approach 30% within five to six years underscores the scalability of OXB's operations and its ability to leverage increased capacity. As the demand for cell and gene therapies continues to rise, OXB's strategic positioning and financial health will likely enhance its value creation pathway, de-risking its assets and solidifying its competitive advantage in the CDMO space.
In summary, OXB's latest trading update reflects a strong operational performance and a clear pathway to profitability, supported by strategic acquisitions and a robust balance sheet. The company's ability to maintain momentum in revenue growth and operational efficiency will be critical as it navigates the competitive landscape of the cell and gene therapy market. With a solid foundation and ambitious growth targets, OXB is well-positioned to capitalize on the increasing demand for its services, further establishing itself as a leader in the CDMO sector.