(Alliance News) - Horizon Discovery Group PLC on Monday said its annual loss widened substantially as a consequence of increased costs and expenses, though it remains confident in its future prospects after a successful placing in 2020.
For 2019, the cell engineering firm made a GP11.5 million pretax loss, widened from a GBP6.6 million pretax loss in 2018, although revenue increased 7.8% to GBP58.3 million from GBP54.1 million.
The widened loss resulted from a 20% rise in corporate and administrative expenses to GBP24.4 million from GBP20.4 million, as well as a 14% increase in sales, marketing and distribution costs to GBP14.3 million from GBP12.5 million. In addition, research, development and operations costs rose 6.0% to GBP14.2 million from GBP13.4 million.
Since the beginning of 2020, in April, Horizon raised GBP6.9 million via a share placing, the aim of which was "to provide additional financial flexibility to protect and grow the business during the Covid-19 crisis".
Chief Executive Terry Pizzie said: "Following our recent placing the group has a robust balance sheet, which when combined with the range of other mitigating actions being taken, will mean the business has the financial flexibility to continue its investment in strategic projects and a sufficient working capital and liquidity position, providing protection in the event of a prolonged Covid-19 related economic downturn.
"We remain confident about the group's long-term prospects given our industry-leading gene editing and gene modulation expertise and our broad portfolio of tools and services, which provide the basis for a sustainable competitive advantage and strong prospects for growth in 2020 and beyond.
"However, given the ongoing uncertainty around the scope, duration and impact of the pandemic, Horizon is unable to predict the full year consequences of coronavirus."
Shares in Horizon Discovery were trading flat at 111.00 pence in London at midday.
By Anna Farley; annafarley@alliancenews.com
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