11th Sep 2019 10:43
(Alliance News) - Shares in skincare firm Integumen PLC fell on Wednesday as it reported a widened first half loss despite recently-acquired Rinocloud Ltd boosting revenue.
Shares in the company were 8.9% lower at 1.75 pence each in London on Wednesday morning.
For the six months to June 30, the company posted a sharp revenue increase to GBP347,000 from GBP54,000 in the first half of 2018, but a rise in administrative costs led to a widened loss to GBP975,000 from GBP678,000.
Administrative expenses rose by 75% to GBP1.2 million from GBP690,000 and the company reported exceptional costs of GBP446,000, up from GBP60,000.
The company acquired skin testing services provider Rinocloud via a GBP3.0 million all-share transaction in May. The unit contributed GBP101,000 in revenue in the first half but if the acquisition had occurred at the start of the period, its contribution would have been GBP279,000.
It has also ventured into the cannabidiol market, signing six test contracts with further deals in the pipeline, Integumen added.
The company has been aiming to cut costs and sell off underperforming subsidiaries.
In May, Integumen sold Visible Youth Group, saving GBP244,865 in future contractual liabilities.
In December 2018, it sold its German subsidiary TSpro GmbH to Swiss pharmaceutical company MediNova AG for a token EUR1, removing EUR441,000 of current liabilities and EUR900,000 of contracted obligations up to December 2020.
Looking ahead, Integumen said it has contracted recurring revenues of GBP134,785 in the second half of 2019 with a pipeline of activity that is "significantly higher" than ever before.
Chief Executive Gerard Brandon said: "We have now disposed of the final underperforming subsidiaries and this, along with other cost reduction measures has eliminated short, medium, and long-term debts in excess of GBP2.0 million.
"In addition, we have completed our first acquisition of Rinocloud, enabling Integumen to offer an automated, real-time, real-world skin-testing digital data platform service, brought in four new LabskinAI clients, announced development of our own CBD-infused diabetic wound product range, as well as ramped up our facilities and senior management team."
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