LONDON (Alliance News) - Bioquell PLC said it was on track to meet its expectations for the full year 2015 as it reported a swing to a slim pretax profit for its first half following the sale of its TRaC Global Ltd business in May.
For the half year to end-June the company posted a pretax profit of GBP69,000, swung from a pretax loss of GBP1.6 million a year before, as revenue rose slightly to GBP12.5 million from GBP12.3 million. Pretax profit was boosted by an improved gross profit margin, and lower sales and marketing, research, design and engineering costs. It does not include the proceeds from its sale of TRaC.
Revenue growth was led by a strong performance in Healthcare, as demand for the company's hydrogen peroxide vapour equipment was driven by increased awareness linked to its use in the treatment of Ebola patients in US hospitals last year and concerns over 'superbug', and by a strong performance in Defence. This offset a fall in revenue from the company's Life Sciences segment, due to phasing of deliveries from its order book and a fall in revenue related to the company's older hydrogen peroxide vapour equipment.
Gross profit margin improved to 42% from 39%.
"We are beginning to see in the results the benefits of the new products, services and consumables that we have developed and launched over the last couple of years," said Chairman Nigel Keen in a statement. "The underlying demand for Bioquell's technologies in our core Life Sciences and Healthcare markets is increasing."
Following the sale of TRaC In May, the company began a strategic review, which it said at that time may or may not include the sale of all or part of its business. It said Wednesday that this review is ongoing, and it is in the process of considering "a number of different pathways forward".
Shares in Bioquell were down 1.8% at 130.10 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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