Nottingham, UK – 16 May 2013 – Source BioScience plc (LSE: SBS), the international diagnostic and genetic analysis services business, today publishes its Interim Management Statement for the year to date.
Unless otherwise stated, the financial information referenced below refers to the four months ended 30 April 2013, and the corresponding period last year, this being the latest practicable date to which financial information has been prepared.
Overall business performance
Source BioScience has seen a period of sustained growth during the first four months of 2013, with increased revenue compared with the same period last year. This performance has been underpinned by continued progression of the Healthcare Diagnostics business and LifeSciences’ DNA sequencing services.
The Group had £1.4 million of cash at the end of April (31 December 2012: £1.1 million) after investing net £1.4 million in the acquisition of Inverclyde Biologicals Limited (‘Inverclyde Biologicals’).
The Group is trading in line with management expectations, continuing to build on a strong operational performance last year, and the Board remains confident of the outlook for the full year.
The Diagnostics offering was enhanced during 2012, including the development and validation of proprietary gene-based assays for use as companion diagnostic tests. This expansion of the portfolio of assays, coupled with continued growth in the core expert histopathology service, generated an increase in Diagnostics revenue of more than 35% in the period compared, with last year. We believe the growing demand for gene-based testing strengthens our commercial advantage as we are one of only a limited number of accredited laboratories in Europe with the capability to deliver this type of complex testing.
In February we announced the renewal of the York Teaching Hospital NHS Foundation Trust liquid based cytology contract, together with the installation of the seventh BD FocalPoint™ platform. The contract is worth £1.3 million over three years.
In April, the Group acquired Inverclyde Biologicals, based in Motherwell, Scotland. Inverclyde Biologicals is a market leading manufacturer of high quality diagnostic kits and blood group serology reagents, a product portfolio which is complementary with the exiting Source BioScience healthcare products business. The acquisition creates cross-selling opportunities, brings expertise in designing and manufacturing clinical grade reagents and also enables geographic expansion into Scotland, providing the opportunity to establish an Overnight Service for DNA sequencing locally. Substantial progress has already been made towards crystallising a number of these new opportunities.
Our ambition is to become Europe’s leading commercial provider of DNA sequencing and our Overnight Service is instrumental in achieving this. Our market share in the UK continues to increase and during the period, revenue from this division increased by more than 25% compared with the same period last year.
In March, we launched the reSource™ range of own branded products, initially focused on the critical life science research work flow requirements for DNA extraction and preparation. It is our intention to migrate the majority of our product portfolio across to the reSource™ branding, which will eliminate existing geographical commercial restrictions and expand our addressable market. All of the Group’s products will be available through GenomeCube® which we regard as a major element of the growth strategy for the medium to longer term. This will be achieved by accelerating the globalisation of the products business, enabling our distributors, and customers, fast and ready access to the enhanced product portfolio.
Although still early in the year, we have made a very encouraging start. Source BioScience believes this recent period’s performance reflects the substantial opportunities we see for growth and development across both our Healthcare and LifeSciences divisions.
Issued for and on behalf of Source BioScience.
To contact the Source BioScience team at College Hill, email SourceBioScience@collegehill.com
Melanie Toyne-SewellManaging Partner