16th Jan 2020 11:49
(Alliance News) - Microsaic Systems PLC said Thursday it expects revenue to rise in 2019 as the company achieved increasing momentum in key areas of its business strategy.
Microsaic shares were up 22% in London at 1.34 pence each on Thursday.
In a trading update for the year that ended December 31, the scientific technology company said it expects to report that revenue rose 50% to GBP870,000 from GBP580,000 in 2018. This was a result of strong sales in the second half of the year, which were 66% higher than sales in the first half.
Gross margins also improved "significantly" in the second half and are expected to be 43%, compared to 32% in the first half of 2019.
The company's cash position at December 31 was GBP2.62 million, in line with management expectations, it said.
Microsaic said it made "significant progress with its strategy for the traditional small molecule market during 2019, by signing four new agreements.
The company signed an additional original equipment manufacturer agreement with Biometrics Technologies Co Ltd for its 4500 MID MS detector to be integrated with high-performance liquid chromatography equipment and distributed in Southeast Asia, South Korea and India.
In the biopharmaceutical market Microsaic saw "significant developments", including the launch of the new MiD ProteinID product.
Looking ahead, the company is set to target "further significant increase" in revenue in 2020, by further extending its mass spectrometry product offerings. The company also expects to launch a range of new complete system products in the first half of 2020.
Glenn Tracey, chief executive officer, said: "I am very pleased with the progress in 2019, and excited by the growing pipeline of opportunities ahead of us, which the board believes will deliver significant growth in the short to medium term.
"Our business development pipeline has increased momentum, and, in 2020, we expect to grow our targeted direct sales channel as well as sign more deals with partners," Tracey said.
By Loreta Juodagalvyte; [email protected]
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