July 31, 2007 - Trading Update : Progress in line with expectations
Progress during the six months to end-June 2007 continued in line with that intimated in this year’s Annual General Meeting (AGM) statement. Revenue performance for the period was slightly ahead of that seen for the first half of 2006, although this was behind expectations detailed by management on the outset of the year.
The Chief Executive Officer’s AGM statement detailed the efforts by a group of ‘Requisitionists’ intent of unseating the present management, which resulted in a highly unnecessary and costly diversion for the company. This was compounded by the loss of an important client, who made a surprise exit from small molecule research. Although the second-half of this year has started on a stronger note, Cyprotex has yet to regain the momentum it was enjoying at the end of 2006. The slippage of contract signings and collaborative agreements that has, to date, characterised 2007, however, is shortly expected to pass. Indeed, a very significant screening project agreed this month for one of the world’s ‘Top Ten’ pharmaceutical companies serves not only to remind investors that Cyprotex sets global standards in its industry, but also of the huge potential for adoption of its technical capabilities. Management remains confident of both Cyprotex’s business plan and its market opportunity.
Based on anticipated workload, Cyprotex presently has sufficient financial resources to service its obligations, whilst continuing to expand its marketing reach and research capabilities during 2007. Although the Board of Directors is not anticipating the need to seek new external finance, the significant ‘cash cushion’ the company had this time last year is much reduced.
Cyprotex plc’s results for the six months to end-June 2007 are expected to be released on Thursday, 30th August 2007.
For further information:
Robert Morrison Atwater, CEO
Russell Gibbs, CFO
Tel: +44 (0)1625 505 100
Code Securities Limited
Charles Walker, Corporate Finance
Tel: +44 (0)20 7776 1200
Tel: +44 (0)20 7930 9030