Shares slide as Evocutis warns of uncertain future

THE future of skin research business Evocutis is clouded in uncertainty after it warned it needs to complete opportunities it is pursuing for its Labskin technology and raise new financing in order for the business to survive.

Shares in the Wetherby-based loss-making business, which tests skincare products for the health and cosmetic market, plummeted last night, closing 30% down at 0.75p on the London Stock Exchange, wiping a third off the value of the company.

Earlier this month, the company announced that talks over it merging or being sold had ended and that it was looking at other options to secure its future, which led to its meeting yesterday at the offices of law firm Walker Morris in Leeds to consider whether it needs to take any steps over its net assets falling to less than half its called up share capital.

At the meeting, the company said if it is unable to conclude any of the talks or raise new finance, it will have to “consider its viability.”

“The directors believe that the best course of action for shareholders remains for the company to continue with those discussions until they reach a conclusion, however the outcome remains uncertain and is dependent upon a number of commercial factors.

“Should none of the ongoing opportunities and discussions reach a successful conclusion, and in the absence of new finance being raised for the company, the directors will need to consider the financial viability of the company and the possible distribution of any residual value to shareholders.”

LabSkin is a research tool that replaces animals for the testing of products to be used on human skin.

Last year Evocutis announced pre-tax losses had grown from £1.2m to £1.68m as turnover doubled from £227,000 to £457,000.