18th Aug 2015 07:12
LONDON (Alliance News) - Cyprotex PLC Tuesday said it expects to report further improvements in its financial performance in its second half, as it posted a narrowed pretax loss for the first half of 2015.
Cyprotex is a preclinical discovery and development contract research organisation working in the pharmaceutical, chemical, personal care and cosmetic industries.
For the half year to end-June the company reported a pretax profit of GBP387,286, narrowed from a pretax loss of GBP428,337 a year before, as revenue rose to GBP6.9 million from GBP5.4 million. The company attributed its rise in revenue to growth from existing customers, particularly in higher value contracts, and benefits from its investment strategy, which began in early 2014 and completed in early 2015, "bearing fruit."
Gross margins increased to 76.7% in the half year, compared to 75.0% a year before, as the company decreased outsourcing in the period to partners as several new services were brought in-house.
It has continued to invest in research and development projects, continuing to add new equipment and capabilities, and in headcount during the period.
"The investment programme resulted in the generation of an operational loss for 2014, however, as anticipated the company has rapidly returned to operational profitability in the first half of the year and the board remain confident that trading for the year is in line with expectations and that this improvement in financial performance will be sustained in the second half of 2015 as we consolidate our new and improved service offerings," said Chairman Ian Johnson in a statement.
Shares in Cyprotex were up 2.7% at 55.46 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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