LONDON (Alliance News) - Shares in Bioquell PLC dropped 14% Thursday after the firm forecast a half-year pretax loss in its Bio division, which will hit its overall results for the full-year.
The company said its Bio division had seen a slow start due to weak sales of its Life Sciences equipment, and expects these subdued sales to continue throughout the first-half. It expects a pretax loss for the division of around GBP1.0 million in the first-half; and whilst it expects it to improve profitability in the second-half, the divisions results will be below expectations and dampen results for the year.
Its Testing, Regulatory and Compliance service business continued to perform well and in line with expectations, and revenues are expected to be slightly weighted towards the second-half.
In Life Sciences, sales were particularly weak in China and the USA, and equipment margins were held back as a higher proportion of sales went to original equipment manufacturers.
Although it has seen increased demand for its modular aseptic workstations, called QUBE, substantial revenues have not yet come from the product.
In its Healthcare business interest has been driven by a series of high profile publications, and market interest in the US for its automated room disinfection systems continued to grow, it said. Bioquell is currently looking at opportunities in Emerging Markets, and is working to adjust its ICE-pod product to better fit market demands in these territories.
Trading in its Defence business has been "satisfactory" in the year to date, Bioquell said, although it is still waiting for a large contract in the Middle East which would boost its second-half results.
Revenues for the year to end-April were ahead of the previous year, Bioquell said.
Shares in the company were trading down 14% at 107.38 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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