• 136% improvement in sales during 1H FY25 of $8.5 million
• Improvement in gross margin to 59% in 1H FY25
• 20% improvement in underlying loss for 1H FY25 of $8.4 million

Genetic Signatures Ltd (ASX:GSS) reported positive results for the half year ended 31 December 2024 (1H FY25). The company recorded sales of $8.5 million, a 136% improvement compared to 1H FY24. Gross margin also improved to 59% from 42% in the prior period, primarily due to decreased inventory obsolescence expenses. The underlying loss for 1H FY25 was $8.4 million, a 20% improvement from 1H FY24. However, the statutory loss of $15.2 million included a $6.8 million impairment expense related to the proposed Next Generation instrument, which was determined to no longer be the best commercial option. As a result, the company has outlined a new strategic direction to develop an automated technology solution using commercially available instruments, which is expected to be completed within 24 months at a lower cost compared to the internal development of the Next Generation instrument. The company also secured its first commercial US contract in February 2025 for the EasyScreen Gastrointestinal Parasite Detection Kit, representing a significant milestone as it expands its presence in the US market. The focus for the second half will be on continuing to build momentum and converting more opportunities in the US sales pipeline.

The company outlined a new strategic direction to develop an automated technology solution using commercially available instruments, which is expected to be completed within 24 months at a lower cost compared to the internal development of the Next Generation instrument. The company will also undertake a market assessment to define the syndromic infectious disease menu using 3base® technology, which will be launched with the new hardware and software solution in key global markets.