Cambridge Nutritional Sciences PLC (AIM: CNSL), the specialist medical diagnostics company focused on personalised health and nutrition testing, has reported a significant decline in revenue for the six months ended 30 September 2026, falling to £2.4m from £3.9m in the prior year period. The AIM-quoted group recorded an adjusted EBITDA loss of £0.5m against a profit of £0.1m a year earlier, with a loss before tax of £0.8m. Despite the challenging trading environment, the company stated its IVDR regulatory project remains on track for submission in Q3, with a CNS Lab launch targeted for Q4, a development investors will be watching closely as a potential commercial catalyst.

Key Points

  • Cambridge Nutritional Sciences PLC (AIM: CNSL) — specialist medical diagnostics, focused on food sensitivity and health nutrition testing
  • H1 revenue fell 38% to £2.4m (H1 2026: £3.9m), with the largest year-on-year declines in Asia and the Americas
  • Cash balance stood at £1.9m at 30 September 2026, down from £3.6m a year earlier; a further restructuring was undertaken in October 2026
  • Investors should monitor the IVDR submission timeline in Q3 and whether H2 adjusted EBITDA reaches the near-breakeven level guided by management

Revenue Decline Driven by Asia, China Policy Changes, and Middle East Weakness

The announcement attributes the revenue shortfall to multiple regional pressures. Policy changes in China are expected to remain disruptive for several years, while inflation and cost-of-living pressures across the Middle East and Asia led to a drop in distributor activity, with distributors failing to adhere to previously submitted forecasts. Product-level data shows FoodPrint® revenue fell 45% year-on-year to £1.3m, and Food Detective® declined 61% to £0.2m. The Americas, which contributed just £0.2m against £0.7m a year earlier, also underperformed materially, with the company acknowledging that laboratories signed in that region are taking longer than planned to commence testing activity.

India Growth and Cost Restructuring Provide Partial Offset for CNSL

Against the broadly negative regional picture, India delivered sales growth of 8.5% in sterling terms and approximately 20% in local currency, representing one of the few bright spots in the half. The company also reduced overheads by 17% to £2.5m, a direct result of the March restructuring, with a further restructuring completed in October 2026 to reduce the fixed cost base and protect cash runway. Administration cost reductions of £0.5m year-on-year were highlighted as evidence of management's focus on operational efficiency. Gross margin narrowed modestly to 66.4% from 67.7%, largely reflecting the fixed-cost component within cost of sales at lower volumes.

IVDR Project on Track as FoodPrint® Seeks Regulatory Differentiation

The IVDR regulatory project, which relates to compliance with the EU In Vitro Diagnostic Regulation, remains a central strategic priority for the group. The announcement states the project is on track for submission in Q3, with CNS Lab expected to be ready to launch in Q4. Capital expenditure of £0.25m in the period was predominantly directed toward this new product development. Management believes IVDR accreditation will help differentiate the FoodPrint® product, assist in converting the sales pipeline, and attract new partners. Chair Carolyn Rand described the project as key to the company's long-term market positioning in next-generation food sensitivity testing.

Cash Position and H2 Outlook as CNS Targets Near-Breakeven EBITDA

The cash balance of £1.9m at 30 September 2026 compares with £2.6m at the March 2026 year-end, with outflows driven by the adjusted EBITDA loss, capital expenditure, and financing activities. The company states it expects adjusted EBITDA for H2 to be near breakeven and anticipates gross margins to hold at current levels. Full-year sales are guided to be lower than the prior year. Management stated it believes sufficient working capital exists to execute its strategy, though the cash position is expected to reduce further in line with continued IVDR investment. Investors may watch whether the October restructuring and H2 sales recovery are sufficient to stabilise the balance sheet.