2nd Sep 2020 10:58
(Alliance News) - Microsaic Systems PLC on Wednesday said its performance for the first half of 2020 was hurt on customer site closures and the postponement of investment decisions amid Covid-19.
Shares in the developer of mass spectrometry instruments were trading 9.8% higher at EUR0.55 each on Wednesday morning in London.
For the six months ended June 30, Microsaic posted a pretax loss of GBP1.5 million, slightly narrowed from GBP1.6 million the year prior. Revenue plunged significantly to GBP71,992 from GBP328,428 due to the pandemic and the resultant lockdown restrictions across the world. No instrument sales were made during the period
However, it said the negative impact of the pandemic was mitigated by cost-cutting measures.
"As soon as it became apparent that product sales were likely to be significantly lower than anticipated given the impact of Covid-19, the board quickly took action to reduce operating costs and to limit expenditure to essential items," it added.
Total operating expenses for the first half were GBP1.5 million, down from GBP1.7 million.
The Woking, Surrey-based company added it commenced its strategic review in August by contacting third parties which its financial adviser BDO LLP and the board have identified as potentially being interested in Microsaic and its technologies and products.
In July, Microsaic decided to undertake a strategic review due to pressure from Covid-19. It added that the review would involve a broad range of options to either facilitate raising additional equity funding, strategic investment, or sale of company.
Looking ahead, Chief Executive Glenn Tracey said: "Instrument sales recommenced in July and there are initial signs of improvement in the opportunities for sales and business development, particularly in Asia Pacific. However, with the Covid-19 pandemic still affecting key sales channels and end markets, the board anticipates that sales for the full year 2020 will be very significantly lower than the level achieved in 2019.
For 2019, Microsaic posted revenue of GBP872,125.
Cash held as at June end was GBP1.5 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Microsaic