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(Alliance News) - Diaceutics PLC on Tuesday reported strong revenue growth in its first half despite a widened loss, as well as strong demand from new customers despite a cautious atmosphere in the pharmaceutical sector.
The stock was down 2.3% at 106.50 pence in London on Tuesday morning.
Belfast-based Diaceutics, which provides diagnostic commercialisation services to pharmaceutical and biotechnology firms, reported a GBP2.0 million pretax loss for the first half of 2023 following a GBP1.1 million loss the year before.
Cash and equivalents at June 30 totalled GBP17.9 million, down from GBP19.8 million at December 31, which Diaceutics said reflected its acceleration of investment in its DXRX Data and DXRX Platform Products divisions.
Administrative expenses increased 46% to GBP10.9 million from GBP7.5 million.
Revenue increased 32% to GBP9.9 million from GBP7.5 million, while recurring revenue surged 66% to GBP4.6 million.
Diaceutics's order book meanwhile grew 43% to GBP24.1 million at June 30 from GBP16.9 million at December 31. Of this, Diaceutics expects to realise GBP6.8 million in the second half of 2023.
"We are pleased to report that the strong momentum we enjoyed in 2022 has continued into 2023...with recurring revenue and order book growth, continued expansion of our lab network and therapy brand growth in line with our strategic roadmap, commented Chief Executive Officer Peter Keeling.
"Pharma companies are increasingly recognising the importance of utilising our data technology and lab network to significantly improve their commercial success."
Diaceutics said that despite the pharmaceutical industry "spending cautiously" during the half year, it experienced "continued strong demand from new customers," as well as renewals.
"The successes of 2023 to date and the significant momentum achieved across the period serve to validate the group's growth strategy, with trading in line with management expectations," the company added.
Also on Tuesday, Diaceutics announced that CEO and co-founder Keeling intends to step down on January 1.
His nephew, Chief Innovation Officer Ryan Keeling, has been promoted to CEO designate with immediate effect, having worked at Diaceutics since 2006 and joined the board at its initial public offering in 2019.
Peter Keeling will remain on the board as an executive director to support the leadership transition, after which he will continue working to accelerate Diaceutics's corporate development.
"Ryan has been a core part of our growth and development since he joined the company in 2006 and is an exceptionally capable leader," said Chair Deborah Davis. "I look forward to continuing to work with him as we realise the full scale of the market opportunity, helping our pharma customers identify patients in need of therapy."
By Emma Curzon, Alliance News reporter
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