29th May 2014 09:47
LONDON (Alliance News) - Graphene NanoChem PLC Thursday said its pretax loss widened in 2013 as increased revenues were offset by a range of higher costs at the company.
The performance nanochemicals and advanced materials company said pretax loss widened to GBP10.2 million in 2013 from GBP5.4 million in 2012, despite a 22% increase in revenue to GBP33.6 million from GBP26.0 million.
The company said revenues increased as it secured the renewal and extension of a number of contracts with Tier 1 oil and gas customers and doubled its production capacity with a second reactor at its nanomaterials facility during the period.
However, Graphene NanoChem said its cost of sales increased 31% to GBP33.4 million from GBP25.4 million, administrative expenses increased 33% to GBP2.8 million from GBP2.1 million, and depreciation and amortisation costs jumped to GBP3.0 million from GBP1.6 million, leading to the company's losses.
The company said it made the losses as it focused on expanding capacity and improving operational efficiency at its chemicals facility during the year and completed the acquisition of Platinum Nanochem Group through a reverse takeover, leading to the amortisation losses during the period.
The company had announced earlier in May that it was trading in line with expectations for the full year, as it was making "excellent" progress in a number of areas for the wider commercialisation of its nanotechnology.
On Thursday, Graphene NanoChem said its cash balance at year end was GBP7.4 million and its net assets came to GBP32.2 million.
Graphene NanoChem shares were down 1.0% to 65.32 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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