(Alliance News) - OptiBiotix Health PLC on Thursday said it expects profit to soar in 2020 amid a hike in sales and administrative expenses being cut.
The York-based life sciences company said it expects net profit for 2020 to come in at around GBP5.8 million, up from a loss of GBP1.9 million a year before.
Sales doubled to GBP1.5 million from GBP744,833, while administrative expenses sunk 28% to GBP1.6 million from GBP2.2 million.
OptiBiotix said it is now in a strong position with increasing sales and improving margins complemented by a large reduction in costs, demonstrating the scalability of the business model.
OptiBiotix said: "2020 has been a pivotal year for OptiBiotix as its probiotic and functional fibre trading divisions have transitioned from demonstrating the commercial viability of their technologies and products to delivering profitability. This has been achieved by growing sales, renegotiating contracts as volumes increase to reduce the cost of goods, improving margins, and where appropriate, modifying partner terms and conditions so they deliver on sales performance and commit to growth plans to retain exclusivity."
Going forward the company said it is now focused on the next stage of its development: growing sales and profitability in its divisions, and commercialising its next generation products.
OptiBiotix did not mention when results for the year are due, but final results were released towards the end of April last year.
OptiBiotix shares were down 6.6% at 57.00 pence each in London on Thursday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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OptiBiotix Health (OPTI)