Record sales for Cyprotex

DRUG testing specialist Cyprotex has notched up record sales despite a delay on a major US contract.

In the year to the end of December revenues grew by 5.3% to £8.33m, but pre-tax profits halved from £588,490 to £249,215.

The Macclesfield firm develops software used by large pharmaceutical groups to predict the effect of medication.

Chief executive Anthony Baxter said extra staff costs, internal research and development, and capital expenditure had dented profits, but the company “now had a platform to take it through the next few years”.

Cyprotex, which has 75 staff, said it had expanded its customer base, with new business coming from the tobacco and aerospace industries as well as cosmetics and agrochemicals.

US revenues accounted for 40% (2011: 44%) and further growth is expected this year. Cyprotex said revenues from Europe remained strong and it has noted a “burgeoning increase in business” from the rest of the world.

Chairman Steve Harris said: “We are confident that investment, together with the continuing diversification of our customer base to include companies both in and outside of the pharmaceutical industry, has prepared Cyprotex for a period of substantial growth and profitability, ultimately creating value to our shareholders.”