Circassia has delivered another positive update, demonstrating yet again the benefits of management’s restructuring actions in recent years. Notable highlights were a strong Gross Margin performance on favourable mix effects and continued progress on reducing the overhead base. Net, this resulted in EBITDA of £3.2m in H1, some 78% of our previous FY estimate. We push through material profit upgrades this year (+50% to EBITDA) and trickle these through to outer years. With cash generation now following improved profitability, the additional $10.5m windfall expected from BeyondAir will further strengthen the balance sheet.
