15th Nov 2013 07:00
FOR IMMEDIATE RELEASE
15 November, 2013
Bioquell PLC
Interim Management Statement
Bioquell PLC ("Bioquell") (LSE symbol: BQE) - provider of specialist microbiological contamination control and remediation technologies to the international Healthcare, Life Sciences & Defence markets ("Bio"); and specialist testing and regulatory compliance services in the UK via its TRaC division, today announces its Interim Management Statement for the period from 1 July, 2013 to 14 November, 2013.
Financial position and financial performance of the Company
Orders and revenues in the period ending October 2013 were ahead of the same period for last year for both the Bio and TRaC divisions.
The Group has a strong balance sheet.
Life Sciences
Our recently launched QUBE - which comprises a unique, modular aseptic work-station incorporating Bioquell HPV technology - continues to gain momentum with increasing quotation and order levels from overseas customers. Since July we have made significant progress in developing, refining and optimising the production processes for the QUBE, which we are beginning to deliver to customers in the UK and internationally.
In the US we are seeing strong demand for our flagship RBDS (Room Bio-Decontamination Service) which provides our HPV technology to Life Science clients on a service basis. Although enquiries and quotes for our HPV equipment in the Life Sciences sector remain high in Asia, we are continuing to see fluctuating order levels.
We continue to find new applications in the Life Sciences sector for our hydrogen peroxide vapour ("HPV") technology to eradicate - or mitigate the risk of - microbiological contamination. We are also seeing increasing demand for our new range of related consumable products comprising biological indicators, chemical indicators and hydrogen peroxide cartridges. In parallel, many regulators around the world are displaying heightened sensitivity to the adverse consequences of microbial contamination of pharmaceutical products or related production processes.
Healthcare
Since July we have seen increasing levels of interest in our recently launched Infection Control Enclosure service (ICE-pod) from NHS hospitals. Confidence in the ICE-pod among NHS hospitals is growing as we - in partnership with NHS clients - understand better how to use the ICE-pods optimally to reinforce standard infection control measures as well as to improve patient flows and bed-space utilisation within a hospital. We are also receiving positive feedback on two ICE-pods that have been installed and are being evaluated at a hospital in the Middle East. In parallel with the commercial roll out of the ICE-pod, we have been investing significant resources in improving the capacity and efficiency of the bespoke design and manufacturing systems required to support anticipated future demand for the ICE-pod.
In Europe and in the USA we are seeing more demand for our emergency (RBDS) service, in part as resistant Gram-negatives - and particularly Carbapenem-resistant enterobacteriaceae ("CREs") - spread to hospitals in Europe and the USA.
Defence
In the period we have applied significant engineering resources to a development contract relating to the UK Ministry of Defence's new SV vehicle. We have also been working on securing a number of commercial opportunities for our defence division, including a significant contract from the Middle East.
TRaC - Testing, Regulatory and Compliance
Our TRaC division continues to trade well and is generating revenues across a broad range of sectors including the aerospace sector. TRaC is also continuing to expand the range of services it provides - including within its consulting division - and is also examining ways of increasing its international fee income.
Outlook / prospects
In the "Bio" division we are seeing encouraging growth in the new products and services - specifically the QUBE, ICE-pod and the range of HPV-related consumables - in which we have invested significant time and resources developing and bringing to market. These new products have been designed to increase the proportion of our recurring revenues.
Life Sciences equipment sales still represent an important component of our turnover in the "Bio" division and although we are seeing encouraging signs of increased activity in the USA we continue, as indicated at the time of the interims, to face some challenges in forecasting the timing of receipt of equipment orders in Asia.
TRaC continues to trade well.
- Ends -
Enquiries
Nigel Keen (Chairman) Bioquell PLC 01264 835 900
Nick Adams (Chief Executive)
Mark Bodeker (Finance Director)
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Notes to editors:
§ Bioquell is a UK-headquartered, international technology company with two divisions:
o Bio (www.bioquell.com) which sells products and services to eradicate - or mitigate the risk of - microbiological contamination for the Healthcare, Life Sciences and Defence sectors, with a substantial proportion of its revenues generated from overseas customers; and
o TRaC(www.tracglobal.com) which provides specialist Testing, Regulatory and Compliance services - including EMC, environmental and safety testing - principally to UK corporates.
§ Bioquell's bio-contamination control technology is principally based around hydrogen peroxide vapour ("HPV") - which is highly efficacious at eradicating micro-organisms comprising bacteria, viruses and fungi at room temperature - and is subsequently broken down using specialist catalysts to water vapour and oxygen (hence an extremely 'green' technology) at the end of the 'bioquell' process.
§ For the last two years Bioquell has invested substantial sums in developing a new product range which has been designed to increase the proportion of recurring revenues from its HPV technology - and hence increase its quality of earnings.
§ Bioquell's HPV technology:
o is used by bio-pharmaceutical, biotechnology and research institutions to provide sterile equipment and/or sterile working environments;
o is used to eradicate "superbugs" from hospitals; independent scientific research has demonstrated that 'bioquelling' hospital equipment and facilities reduces significantly the rates of hospital acquired infection;
o is used to provide single rooms to hospitals (via the ICE-pod) which currently only have open, multi-bed "Nightingale" ward structures
o has been incorporated in a wound-care product - BioxyQuell - which has received regulatory approval for use on chronic wounds in the European Union; and
§ Bioquell currently has overseas operations in the USA, France, Ireland, Singapore, China and Brazil. TRaC sells its specialist services to the product development departments of a broad range of companies, principally based in the UK, with a particular focus on organisations operating in the aerospace and military sectors.
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