7th Sep 2020 12:05
(Alliance News) - Diaceutics PLC on Monday said it swung to interim profit and saw a revenue increase despite Covid-19 disrupting healthcare markets.
Shares in the firm plunged 23% to 135.00 pence each in London on Monday around midday, however, as the diagnostic commercialisation company warned on its full-year revenue.
Revenue in the six months to June 30 climbed 21% annually to GBP5.3 million from GBP4.4 million.
The Belfast-based firm reported a pretax profit of GBP26,110, swinging from a loss of GBP2.0 million a year earlier.
The revenue increase, Diaceutics said, came despite "the disruption in the global healthcare markets due to Covid-19".
"In the first half of the year we have grown our client base, revenue and global reach and, at the same time, initiated innovation via our investments in data analytics and the introduction of our proprietary diagnostic network for precision medicine. However, all aspects of the healthcare business have been impacted in unprecedented ways by Covid-19 and we first saw this in our EU and Asian implementation projects," Chief Executive Peter Keeling said.
Despite managing to secure first-half revenue growth, the company warned on its full-year performance.
"In the third quarter, from mid-August, a lower than expected conversion of proposals, due to some deferrals of spend on client brands and delays of certain new product launches due to Covid-19, mean that the directors now expect a substantial reduction in sales in the second half of the year, such that this year's revenue may be materially lower than the prior year," Diaceutics said.
The company has turned to cost cuts and has found savings of GBP600,000.
By Eric Cunha; [email protected]
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