15th Jan 2015 10:41
LONDON (Alliance News) - Bioquell PLC Thursday said it generated slightly more revenue during 2014 compared to the previous year, but warned it will be making a GBP3.9 million impairment charge against patents, products and its wound-care technology following a review of its Bio division.
The provider of microbiological control technologies estimated revenue for 2014 will total GBP45.3 million, a 1.5% increase on the GBP44.6 million reported in 2013. Of the total revenue, GBP27.3 million is expected to come from the Bio division, with the remaining GBP18 million coming from the TRaC division.
The TRaC division offers testing, regulatory and compliance services, whilst the Bio division develops and offers different technologies for the healthcare, defence and life sciences industries, such as infection control and environmental filtration.
In 2013, the Bio division generated GBP27.9 million in revenue, meaning a slight drop is expected in 2014, whilst the TRaC division made GBP16.8 million, showing a significant rise during the year.
Overall, Bioquell is expecting earnings before interest and tax to "be in line with market expectations", and reported a cash balance of GBP1.1 million at December 31.
The company warned adoption of its wound-care technology BioxyQuell has been slower than expected and said it is making an impairment charge of GBP1.9 million against the value of the technology.
A further GBP1.2 million impairment charge will be made against the value of some of the company's patents after BioQuell completed a review of the Bio division's patent costs. The company decided to narrow its portfolio of patents to reduce costs.
In addition, a further GBP800,000 will be impaired against products which are due to be discontinued from the Bio division during 2015.
"The board has reviewed all other capitalised product development costs in the Bio division in light of the ongoing updating of the division's product range, which will see the discontinuance of certain products and their replacement by new and improved ones later this year," it said in a statement.
The total non-cash impairment charge for 2014 is therefore set to be GBP3.9 million, which will be partially offset by a deferred tax credit of GBP800,000, it said.
Bioquell shares were down 4.4% to 87.00 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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