18th Mar 2014 11:27
LONDON (Alliance News) - Source BioScience PLC swung to a pretax loss in 2013 due to restructuring and costs relating to acquisitions during the year.
The company posted a pretax loss of GBP1.1 million, versus a pretax profit of GBP963,000 in the previous year, despite seeing revenue rise to GBP19.5 million from GBP16.4 million, hit by restructuring and acquisition costs.
Source posted a restructuring cost of GBP1.1 million relating to operational changes to its acquired businesses, which it expects to generate yearly cost savings of around GBP1.0 million. It also saw sales costs rise to GBP10.5 million from GBP9.0 million in the previous year.
The company acquired Invercylde Biologicals Ltd and Vindon Healthcare PLC during the period. It said it was working to ensure that the new businesses were integrated quickly and efficiently, and to date the integration was going to plan.
In the company's Healthcare division, revenue rose to GBP9.4 million from GBP8.6 million, boosted by the launch of its sexually transmitted infection testing service and subsequent winning of chlamydia screening tenders with Kent County and Medway Councils.
In the new Stability and Bio Storage division, which consists of Vindon combined with the company's existing laboratory services, revenue rose to GBP2.5 million from GBP800,000 in the previous year.
Source said that its strategy is to expand its service and product offering to enable greater market penetration. It intends to achieve this goal through continued organic growth and further carefully selected acquisitions.
Shares in Source were trading down 3.9% at 12.50 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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