Cambridge Nutritional Sciences (LSE:CNSL), the food intolerance testing group, reported lower sales and a statutory loss of £5.8 million for its 2026 financial year, driven largely by non-cash charges. The directors said they have adopted the Going Concern basis through to 31 March 2028 and that costs have been cut.

What the company does

Cambridge Nutritional Sciences, known as CNSL, makes diagnostic tests for food intolerance and sells them to clinicians and partners around the world. Its product lines include FoodPrint, Food Detective and laboratory testing services under the CNSLab name. Revenue comes from kits, laboratory work and white-label agreements, and the company sells in the UK, India, the Americas, Africa, the Middle East and Asia.

Latest developments

For the year ended 31 March 2026, revenue fell 16.3% to £7.0 million from £8.3 million, mainly because of weaker international demand. FoodPrint, the largest category, produced £4.3 million, down 12%. Food Detective fell 46% to £1.0 million, while CNSLab services rose 2% to £1.7 million. India grew 23% in sterling terms, the UK was broadly stable at £1.7 million with testing Demand up 11%, and the Americas fell 33%.

A trading and Business update in April 2026 had already flagged lower revenue and a small loss on an adjusted basis. Adjusted EBITDA was a loss of £0.4 million compared with a profit of £0.4 million the previous year. UK full-time headcount fell from 76 to 58, with savings expected to show in the current financial year. The sales team was reorganised, a customer success team was created, and a new five-year agreement with the UK white-label partner was signed. LSE:CNSL is targeting completion of compliance with the European in vitro diagnostic regulation in 2027.

Financial picture

The statutory loss after tax was £5.8 million against a profit of £1.6 million a year earlier. It included a £3.0 million Goodwill impairment, a £1.4 million write-off of a deferred tax asset and a £0.3 million bad Debt provision, so the underlying cash loss was much smaller. Gross Margin improved to 67.8% from 65.3%. Cash and deposits were £2.6 million, down from £4.9 million, after an operating outflow of £1.2 million and investing outflow of £0.7 million. There were no short-term borrowings, net current Assets were £4.0 million and total shareholders' funds fell to £5.7 million from £11.4 million. A reverse stress test indicated that resources would last even if revenue fell a further 15% and gross margin deteriorated by another 15% after mitigating actions, although LSE:CNSL stressed it was not a forecast.

Sector and index context

CNSL (LSE:CNSL) is a small diagnostics and healthcare name on the FTSE AIM All Share Index. Consumer and clinical demand for food intolerance testing is influenced by scientific debate over its value, regulation of in vitro diagnostics, and the strength of distributor relationships overseas.

Key risks

Falling international sales, particularly in the Americas, Africa, the Middle East and Asia, are a concern, as is the decline in Food Detective. The cash balance has halved in a year, and the cost of regulatory compliance could weigh further. Cost savings must be delivered without harming sales.

What to watch next

Investors will look for evidence that the revenue decline is slowing, especially in FoodPrint, and for the first results of the cost savings and the sales reorganisation. Progress with regulatory work, the cash position and the first-half results later in 2026 will be tracked.