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Preliminary Results for the Year Ended 31 December 2013

Preliminary Results for the Year Ended 31 December 2013

Transformational year for the Group; strong underlying growth combined with acquisitions

Nottingham, UK - 18 March 2014 - Source BioScience plc (LSE: SBS), the international laboratory services and products business announces its unaudited preliminary results for the year ended 31 December 2013.

 

Financial highlights

  • Revenue increased by 19% to £19.5 million (2012: £16.4 million)
  • Adjusted operating profit* increased by 23% to £1.4 million (2012: £1.2 million)
  • Adjusted EBITDA* increased by 23% to £3.3 million (2012: £2.7 million)
  • Loss before tax of £1.1 million (2012: profit of £1.0 million)
  • Cash generated from operating activities of £2.1 million (2012: £3.3 million)
  • Successful placing and open offer raising £10.3 million of new equity funding
  • Cash balance of £4.2 million (2012: £2.2 million) and net debt of £5.0 million (2012: £0.9 million)

 

*Adjusted results are stated after eliminating the aggregate £1.2 million acquisition costs for Vindon Healthcare plc (‘Vindon’) and Inverclyde Biologicals Limited (‘Inverclyde Biologicals’) in addition to post-acquisition restructuring costs of £1.1 million.  The adjusted results have been included to present a fair comparison of the progress in the underlying business.

 

Operational highlights

  • Transformational acquisitions of Vindon and Inverclyde Biologicals, broadening the Group’s product and service offering, and geographical reach
  • Acquisition of Vindon for £12.2 million funded by means of a successful firm placing and open offer to raise £10.3 million in conjunction with new banking facilities
  • Competitive tenders won for Kent County and Medway Councils and other commissioning groups under the National Chlamydia Screening Programme (‘NCSP’); contracts worth in excess of £1.0 million over three years
  • New DNA sequencing facilities opened in Bellshill and Rochdale, enabling access to the Overnight Service™ in Scotland and North West England

 

Post-period events

  • Competitive tenders won for Worcester County Council and other commissioning groups for chlamydia screening; chlamydia screening contracts now worth in excess of £2.0 million in aggregate over three years
  • Commercial launch of the enhanced Source BioScience portfolio in the USA
  • Opening of a new DNA sequencing facility in Tramore, Ireland

Laurie Turnbull, Chairman of Source BioScience, said:

“2013 has been a transformational year for Source BioScience both through organic and acquisitive growth.

“The underlying business generated good revenue and profitability growth, validating the Company’s organic growth model.  At the same time, the Board reinforced its strategic aim of accelerated growth through acquisition with the purchase of Inverclyde Biologicals and Vindon.  Both of these businesses provide significant growth opportunities by enhancing the products and services portfolio, extending the Group’s geographic reach and bringing a complementary customer base to the Group.

“We are working to ensure that these newly acquired businesses are integrated quickly and efficiently, and to date the integration is going to plan.  We look forward to updating shareholders on the commercial initiatives planned for the enlarged Group.”

 

Issued for and on behalf of Source BioScience by Instinctif Partners.

To contact the Source BioScience team at Instinctif Partners, email sourcebioscience@instinctif.com

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Melanie Toyne-SewellManaging Partner