Bioquell Share News (BQE)

LONDON (Alliance News) - Bio-decontamination product maker Bioquell PLC on Wednesday reported a sharp increase in profit for 2017, with revenue also up, as it main division performed well.

Pretax profit for 2017 rose to GBP3.3 million from just GBP76,000 the prior year. This rise was driven by increased revenue as well as the non-repeat of various costs in 2016.

Revenue rose 10% at reported currency rates, and 6% at constant currency, to GBP29.2 million from GBP26.5 million. The core Bio-decontamination business' revenue jumped 13% at reported rates to GBP28.5 million, while the much smaller Defence business posted revenue of GBP700,000, down from GBP1.3 million.

Bioquell said the decline in Defence was due to the company's increased focus on its core business.

Looking forward, Bioquell said simplifying the group will lead to better performance, and the core division is now on the up. Business in 2018 has begun in line with expectations, and Bioquell is confident on delivering growth in both profit and revenue during the year.

Chief Executive Ian Johnson said: "I am pleased to report continued substantial improvements in the financial performance of the company for 2017. Management continue to simplify the group and focus on generating top line growth from the core bio-decontamination business, which reached record levels for the year."

"The disposal of the legacy Air Flow service activity will enhance our ability to deliver excellent customer service to our core customers. We have invested in sales and marketing resource to maximise our potential in the international life sciences and pharmaceutical market and on further improving financial performance through generating additional recurring revenues."

Shares were down 1.9% on Wednesday at 316.50 pence each.