22nd Sep 2021 09:47
(Alliance News) -Â DeepMatter Group PLC on Wednesday reported a widened interim loss on higher research & development costs.
Shares in the digital chemistry data company were down 13% at 1.30 pence in London on Wednesday morning.
Revenue for the first half of 2021 rose 21% to GBP649,000 from GBP536,000 a year before.
While cost of sales fell 23% to GBP176,000 from GBP230,000, research & development costs stepped up to GBP856,000 from GBP319,000. This resulted in a widened pretax loss of GBP1.5 million versus GBP1.2 million year-on-year.
DeepMatter said its sales were "solid" in the period, and the higher research & development costs reflected continued investment in products.
"The group continued to invest in enhancing products and made progress along development roadmaps, focusing on the commercial appeal of products. The capitalisation of development was lower year-on-year reflecting the stage and nature of development work undertaken in H1 2021 and the milestones expected to be achieved before capitalising DigitalGlassware," said DeepMatter.
DigitalGlassware is DeepMatter's cloud-based collection, analysis and control platform. It saw active users increase by 48% in the half. DeepMatter said it has 40 customers globally and works with 5 of the 10 largest pharmaceutical companies.
Chief Executive Mark Warne said: "On the back of a strong renewals base and our new focus on growing revenues with those customers as well as growth in users and trials, we look forward with increasing confidence to delivering on our potential and the growth we envisage for 2021 and beyond."
By Lucy Heming;Â [email protected]
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