(Alliance News) - Horizon Discovery Group PLC on Monday reported a poor first half due to disruptions and delays caused by Covid-19, but says it is confident of a return to growth in the second half of 2020.
The cell engineering company reported a pretax loss in the first half ended June 30 of GBP11.3 million, widening from GBP5.2 million a year prior.
Revenue for the half was down 14% to GBP22.4 million from GBP26.1 million year on year.
Horizon Discovery blamed the revenue decline on the mass reduction in academic research caused by Covid-19 and said it was in line with its expectations.
The Bioproduction division was hit hardest in percentage terms with revenue down 30% to GBP2.0 million from GBP2.8 million a year prior due to delays caused by facility closures.
The company however saw its biggest loss in revenue in its Research Reagents division, down 15% to GBP16.0 million from GBP18.9 million year on year.
Academic and government research labs account for approximately 40% of the Research Reagents business unit's revenue, and the closure of many of these facilities from mid-March led to a rapid reduction in orders for reagents and cell line products in late March, the company said.
"The greatest impact was seen in the second quarter, most notably in April. This was followed by a sustained recovery, which resulted in large parts of the business regaining momentum and returning to 2019 levels by the end of June," Chief Executive Terry Pizzie said.
Horizon Discovery did not declare in interim dividend.
Pizzie said: "The fundamental drivers and demands for Horizon's products and services remain strong, and the group is confident of a return to growth in the second half of 2020.
"Horizon remains focused on executing its strategy and excited about the continued expansion of its screening market and the opening up of new high growth areas that will come from commercialising its investments in bioproduction and base editing. In the long-term, our ambition is to grow in the low double digit percentage levels."
Horizon Discovery shares were down 5.1% at 101.50 pence each on Monday afternoon in London. The stock is down 32% so far in 2020.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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