(“Cyprotex” or “the Company” or “the Group”)
Pre-Closed Trading Update
Cyprotex (LSE:CRX), the drug discovery ADME Tox services and information company, provides the following pre-closed trading update for the year ending 31 December 2011 ahead of its preliminary results on 22nd March 2012.
Revenues for 2011 are expected to be in line with market expectations with an increase of over 30% on 2010 revenues following a strong second half performance from both our UK and US sites in both ADME and Toxicity service areas. We have added several new strategic pharmaceutical, biotech and Governmental customers during the year for our higher throughput offerings which has contributed to a robust margin performance for 2011. We consider this to be an excellent performance in a challenging market for the pre-clinical research services sector and our competitors.
The Company has remained cash generative with cash in hand at the year end in excess of expectations at GBP 1.1M vs GBP 1.04M for 2010, notwithstanding significant investment in new technologies during the year.
Operational Update and Investment Programme
During 2011, we successfully overcame the loss of our largest customer, by growing many of our existing customers and securing new business. As a consequence, we reduced our dependence on our single largest customer, which in 2011 accounted for 13% of revenues, compared to over 35% in 2008.
We have been delighted by the uptake of our Cellciphr™ high content toxicology assays and have continued to invest in new assays which now, in combination, contribute significantly to our service revenues.
We are also pleased with the customer uptake in our new (genomic) gADME™ service offering announced in October.
Work has commenced in the near doubling our facilities (from 4,400 sq ft to 8200 sq ft) at our Watertown (US) site and we expect completion in early Q1 2012.
We have also enhanced our sales team and now have a full complement of experienced sales specialists in all our operating territories.
Tony Baxter, Chief Executive of Cyprotex, said:
“I am very pleased with the resilient performance in 2011 and that our investment in R&D has resulted in high customer acceptance and financial success. We look forward to 2012 with confidence and to providing a full update of the Company’s performance with the final results in March.”
For further information:
Cyprotex PLC Tel: +44 (0) 1625 505 100
Dr Anthony Baxter, Chief Executive Officer
John Dootson, Chief Financial Officer
Mark Warburton, Chief Operating Officer and Legal Counsel email@example.com