20th Nov 2009 07:00
Cyprotex
("Cyprotex" or "the Company" or "the Group")
Trading Update
Cyprotex (LSE:CRX), the drug discovery technology and information company, provides the following trading update for year ending 31 December 2009.
Current Trading
Revenues for the period are expected to be in line with 2008. Conditions in the CRO market remain challenging and in Q4, normally the strongest quarter, we have experienced lower than expected demand in general and from our largest customer, with whom we continue to have a strong long-term relationship. Notwithstanding this, new business enquiries during the quarter have been more buoyant.
The Company remains cash generative and cash in hand at 31 October 2009 was £1.98 million against £1.72 million at 30 June 2009.
Operational Update and Investment Programme
In line with its stated objectives, Cyprotex has succeeded in reducing its dependence on a small number of key customers by increasing the number of strategic customers from three to five and has continuing discussions with other potentially significant customers.
This year the Company has introduced several new services, including Cloe® Gateway, a portal to bring the Company's predictive Cloe®PK products to the market, six new assays which have generated over £400,000 of additional revenue and has a rolling programme for the introduction of further assays, all of which will generate additional revenues in 2010.
Furthermore, £300,000 will be invested in Q1 2010 to build and fit-out new laboratories and the Company will continue to extend its technical capabilities to enable the provision of additional capacity and new services to current and potential future customers.
Tony Baxter, Chief Executive of Cyprotex, said:
"Although we are disappointed not to have delivered stronger growth this year we believe that this is a resilient performance given the backdrop of challenging market conditions for the CRO sector.
"The new services introduced during the year are delivering additional revenues and our ongoing investment programme reflects our continued confidence in the future prospects for Cyprotex."
For further information:
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Cyprotex PLC |
Tel: +44 (0) 1625 505 100 |
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Dr Anthony Baxter, Chief Executive Officer John Dootson, Chief Financial Officer |
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www.cyprotex.com |
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Noble & Company |
Tel: +44 (0) 20 7763 2200 |
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John Llewellyn-Lloyd |
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Sam Reynolds |
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www.noblegp.com |
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Financial Dynamics |
Tel: +44 (0) 20 7831 3113 |
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Ben Brewerton / Ben Atwell / John Dineen |
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www.fd.com |
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