Proteome extends loan facility

Revenue rose strongly at disease identification specialist Proteome Sciences last year but cash inflows have fallen short of expectations.Revenue in 2008 rose to £0.85m from £0.27m in 2007 while loss before tax narrowed to £4.8m from £5.5m the year before.Cash in hand at the end of 2008 stood at £0.274m, down from £0.53m at the end of 2007. Cash used in operations for the year fell to £3.82m from £4.17m and is expected to continue at this level in 2009.Cash inflows have fallen short of the board’s expectations, prompting the company to extend the terms of the loan facility offered to the company by its chief executive, CDJ Pearce, to £10m. The company’s nominated adviser has verified that the terms of the revised facility are fair and reasonable.The directors believe that cash inflows from the anticipated commercial income should be appropriate to meet the cash requirements of the business, but cannot guarantee the timing of these inflows will marry up with cash expenditure plans. Notwithstanding the above, and taking into account grant income and the loan facility from the company’s chief executive, the directors continue to adopt the going concern basis in preparing the accounts, and accordingly the financial statements do not contain any adjustments that would result if sufficient commercial income or financing were not to be received on a timely basis.‘The conversion of parts of Proteome Sciences' substantial intellectual property position in biomarkers into commercial licenses and revenue has gained considerable momentum in 2009,’ said the company’s chairman, Steve Harris, adding that he expects this trend to continue. Proteome