Avacta pushes ahead with growth goals
HEALTHCARE business Avacta has reported an increased loss before tax but said it is positive of making progress after achieving “key milestones.”
For the year to July, the AIM-listed Wetherby-based company, which provides innovative diagnostic tools, consumables and reagents aimed at reducing the cost of human and animal healthcare, posted a pre-tax loss of £2m compared to a loss of £1.85m last time, but said this was mainly due to non-recurring administrative expenses relating to restructuring costs.
Revenue came in at £3.18m up from £2.7m in 2013.
Avacta Animal Health revenues of £1.59m (2013: £1.50m) were reported, while Avacta Analytical revenues stood at £1.56m (2013: £1.20m).
The group’s Avacta Life Sciences reported revenues of £0.03m.
Gross margins rose to 64% from 56% in 2013, and adjusted pre-tax losses fell to £1.81m from £1.92m while adjusted losses before interest, tax, depreciation and amortisation fell to £1.1m from £1.46m.
In May, the group was successful in raising £10.3m through a share placing to strengthen the balance sheet and support its growth plans, specifically in the development and commercialisation of Affimers, Avacta’s proprietary antibody replacement.
The period saw Avacta strengthen its board with a trio of appointments, including Trevor Nicholls as chairman, Michael Albin as non-executive and Craig Slater as chief operating officer.
Chief executive Alastair Smith said: “Important goals for Avacta this year were to demonstrate that no technical hurdles remained for the scale up of operations and commercialisation of Affimers and then to raise the funding required to execute our strategy. I am delighted that we have achieved these key milestones and attracted the support of new shareholders in the process.
“It is very early days in the commercialisation of Affimers but I am pleased to say that all indications are positive and, having put in place an outstanding and experienced commercial team, I am looking forward to reporting on progress during the coming financial year.”
Chairman Trevor Nicholls added: “The group’s management has been strengthened substantially at board and senior management level. The board is pleased that the group has attracted some important new institutional shareholders and is satisfied that the group is making substantial progress towards delivering on its near and long term opportunities and the board considers that, in this current financial year to date, the group is performing in line with market expectations.”
