Trajan EBITDA up 26.2 per cent, despite headwinds

Analytical science and devices company Trajan Group has announced its financial year results, reporting a 7.4 per cent increase in revenues to $166.5 million and an EBITDA of $15.5 million, below the guidance range but up 26.2 per cent.

In an ASX statement on Thursday, Trajan’s Founder, Chief Executive Officer and Managing Director Stephen Tomisich said the revenue growth was achieved “in a challenging macro economic and geopolitical environment” and reflected “continued demand for Trajan's solutions and our strong customer partnerships globally.” 

Normalised EBITDA was below the $17.0 million to $19.0 million guidance range.

Among the EBITDA, Components and Consumables contributed $34.9 million (up 8.1 per cent), Capital Equipment $9.7 million (zero change) and Disruptive Technologies $1.5 million (up 4.7 per cent.) 

Tomisich added that growth was achieved “despite a previously flagged $3.9 [million] revenue headwind” from discontinuation of a specialised biotech syringe product in the Components and Consumables segment, “demonstrating the resilience of the Trajan business and underlying momentum.” 

Of the flat result in the Capital Equipment division, Tomisich said “growth in price-sensitive emerging Asian markets through legacy  distribution arrangements” impacted Trajan’s margins. 

“Like most capital equipment businesses, we rely on local distribution partners in emerging markets. 

“We're reviewing contracts to ensure equitable margin splits and improving how we communicate our competitive advantages. Where we have critical mass, we're moving toward more direct market presence.” 

The company also noted using cash to reduce net debt by $3.3 million to $29.5 million, and an increase in cash and equivalents to $11.9 million, citing a focus “on cash generation and disciplined financial management.” 

Picture: credit Trajan

Further reading

Trajan provides microsampling devices for space mission

Trajan’s strong revenue, earnings growth

Trajan to acquire US lab consumables business