Allergy Therapeutics plc has released its trading update for the year ended 30 June 2023. The company expects its revenue for the year to be 16% lower at £61.0 million compared to the previous year due to a short-term pause in production. The underlying operating loss before research and development costs and exceptional items is expected to be £13.3 million, reflecting the decline in revenue and increased manufacturing and administrative costs. After an increase in research and development costs, the underlying operating loss before exceptional items is expected to be £33.4 million. The unaudited cash balance at 30 June 2023 was £14.8 million. The company also mentioned the risk of potential rebates due to the German national health insurance association, which may result in a provision for rebates in the financial statements for the year ended 30 June 2023.

Looking ahead, the company expects sales for the financial year to 30 June 2024 to be slightly lower than the previous year due to the allocation of manufacturing capacity to clinical trials. Costs and overheads are expected to be slightly higher. The company plans to invest in clinical trials for the G306 grass study, long-term G308 grass pediatric study, and P101 peanut study, resulting in a significant increase in research and development costs. The company also plans to invest in plant and equipment to support improvements in manufacturing and quality. The company's operational finances are affected by movements in currency markets, as a significant portion of revenues and costs are denominated in Euros and US dollars.

The company is in the process of refinancing its Loan Facility through the Equity Financing, and additional funding is expected to be required from October onwards for trading, working capital, capital expenditure, and research and development programs. The company is in discussions with certain shareholders for additional funding, but no binding arrangements have been made at this stage.