LONDON (Alliance News) - Ultrasound medical simulators provider MedaPhor Group PLC said Friday its pretax loss widened due to investment in its ScanTrainer product, as it said it has raised GBP3.2 million in a share placing.
MedaPhor said pretax loss widened to GBP1.7 million in the year ended December 31 from GBP1.5 million in 2014, despite a rise in revenue to GBP2.2 million from GBP1.8 million, as administraive expenses rose to GBP3.1 million from GBP2.6 million and cost of sales to GBP2.2 million from GBP1.8 million.
MedaPhor said the higher costs came as it focused on developing its ScanTrainer simulator during the year, through expanding its range of teaching modules, introducing a new cloud-based service on the device, and tendering and piloting the device with American Board of Obstetrics and Gynecology. MedaPhor was awarded a contract with the Dallas-based industry body during the year, with ScanTrainer to be used in certification examinations.
MedaPhor noted revenue growth was strongest in the UK, with a 37% increase to GBP940,610 from GBP685,051 "in spite of weak NHS funding", but added there was growth in all its regions.
The group said it believes "continual investment in research and development activities played a key part in the success of the business and winning the American Board of Obstetrics and Gynecology contract".
As cash at year-end stood at GBP1.3 million from GBP2.9 million a year earlier, MedaPhor said it will need further funding to continue its development and said it has conditionally raised GBP3.2 million in a share placing.
MedaPhor said it entered into a placing agreement with Cenkos Securities PLC on March 31 for the proposed placing of 7.1 million shares at a price of 45.00 pence per share. MedaPhor said it has received binding commitments from investors for these shares, and the GBP3.2 million funding is subject to admission of the placing shares, the passing of the resolutions at the general meeting and all conditions being satisfied.
Shares in MedaPhor were untraded on Tuesday, having last traded at 49.50 pence.
The company added it is currently trading in line with management's expectations, and has a "healthy pipeline order book which, combined with the recent contract win and the funding, gives the group a solid platform to support future growth".
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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