15th Nov 2011 07:00
15 November 2011 Source BioScience plc (`Source BioScience', the `Company') INTERIM MANAGEMENT STATEMENT
Source BioScience achieves double digit Q3 revenue growth (year on year); full
year profits expected to be in line with market expectations
Source BioScience plc , the international diagnostics and genetic analysis business serving the healthcare and research markets today provides its Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules, relating to the period from 1 July 2011 to 15 November 2011.
Unless otherwise stated, the financial information referenced below refers to the three months ended 30 September 2011, and the corresponding period last year, this being the latest practicable date to which financial information has been prepared.
Overall business performance
The third quarter of 2011 has been another period of growth and development for Source BioScience. Revenue is up 17% compared with the same period last year and 13% over the full nine months. This performance has been underpinned by strong growth in the LifeSciences division and Healthcare's cervical cancer screening business.
In the first half of the year, the Company undertook a cost cutting exercise in connection with the acquisition and integration of imaGenes, which is continuing to have a beneficial effect on the business in the second half of the year. We are also in a strong financial position with £3.1 million of cash at the end of September 2011 (30 June 2010: £3.0 million).
Overall performance for the year to date is in line with management's expectations, representing a continuation of the strong growth and business performance achieved last year. We continue to expect full year profits to be in line with market expectations.
LifeSciences division
This division's revenue was up 54% year on year based on strong growth in DNA sequencing and life science products and over the nine month period it was up 37%. Much of the increase in sales was due to the launch of an enhanced website for customers and the GenomeCube platform, our proprietary search engine and bioinformatics tool. Website traffic was up by more than 50% and internet orders up more than 20% compared with the same period last year. In addition, the Overnight Service for DNA sequencing was launched in Berlin and Oxford during the period. Finally, we won an international bid to provide DNA sequencing to Trinity College Dublin and University College Dublin which is worth an expected minimum £300,000 per year.
Healthcare division
Demand for our liquid based cytology (`LBC') service, which underpins 48% of the cervical cancer screening programme in England and Wales, was strong during the period. An additional important milestone was receiving approval from the NHS for the BD FocalPoint automated cervical cancer screening technology which is an important revenue growth opportunity for us. In diagnostics, as anticipated, we are seeing a shift in demand towards gene-based diagnostic testing and 30% now has a genetic component compared with 20% in the same period last year. We believe this is indicative of the future of this business and we see strong growth and development opportunities in this specialist area.
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For further information, please contact:
Source BioScience plcDr Nick Ash, CEOTel: +44 (0) 115 973 9010
Email: enquiries@sourcebioscience.com
www.sourcebioscience.com
College Hill (PR Agency to Source BioScience)
Melanie Toyne Sewell/Dimithri Wignarajah
Tel: +44 (0)207 457 2020
Email: sourcebioscience@collegehill.com
About Source BioScience:
Source BioScience plc is an international diagnostics and genetic analysis business serving the healthcare and research markets. The LifeSciences division provides core laboratory research support from conceptualisation to implementation, calling upon a wide range of cutting-edge technology platforms including an online catalogue of biomolecular tools. The Company is a trusted provider of a complete range of sophisticated microarray, next generation and conventional sequencing services. GLP, GCP and CPA accreditations make the sequencing offerings also very attractive for applications in regulatory studies or clinical settings. Its Healthcare operations provide screening and reference laboratory diagnostic testing for cancer and other diseases and additional predictive testing for treatment optimisation for clinicians and patients. The Group has its headquarters in Nottingham, UK. Further information about Source BioScience can be found at www.sourcebioscience.com
Disclaimer
The Interim Management Statement may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of Source BioScience plc speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Source BioScience plc does not undertake to update forward-looking statements to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
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