Second half sales to slow for Evocutis
EVOCUTIS is expecting to post a full year loss of up to £1.2m but said today it has sufficient cash reserves to fund its ongoing activities.
The Wetherby-based business lost its chief executive, Stephen Jones, in May and has since been undergoing a review of its business performance under interim chief executive Gwyn Humphreys.
AIM-listed Evocutis is focussed on advanced laboratory and clinical evaluations of skincare products for the health and cosmetic markets
In a trading update ahead of its full year end on July 31, Evocutis said it expects its revenues to grow at a slower rate in the second of its financial year compared to the same period last time.
However, revenues have grown by 113% over its first half.
Total revenues are expected to be more than double at around £460,000. However, the company’s loss before tax is expected to be between £1m and £1.2m.
Evocutis said it had cash balances of around £1.7m at May 31 and is debt free.
“The directors are confident that the company has sufficient cash to fund the company’s activities for at least the next 12 months,” it said.
Dr Humphreys is to remain in his post until a full-time chief executive is appointed.
He said: “It is disappointing that sales revenue growth in the second half of the year is not as strong as the growth seen in the first half.
“However, total revenues for the year are expected to be approximately double those achieved in the prior year and we anticipate that the loss for the year will be lower than that of the prior year.
“The advancement of our LabSkin technology into a commercially available product for direct sale is an exciting step for the Company and this is backed by our consultancy expertise.”
