Pharmaceutical manufacturer said losses came from investment in expanding manufacturing capability
Pharmaceutical manufacturer Angel Biotechnology has reported a pre-tax loss of £1.2 million for the 15 months to March 31, 2012.
The pre-tax loss, covering an extended annual reporting period, came largely as a result of investment expenditure upgrading its Cramlington facility near Newcastle to increase manufacturing capacity.
Angel Biotechnology, which manufactures products for drug development firms, said gross profits for the 15 months were £1.2 million compared with £1.9 million for the 12 months covering the previous year.
Revenues for the period were £3.45 million compared to £2.94 million the previous year, though with three extra months of trading compared to last year's results.
However net operating expenses rose to £2.4 million in the 15 months to the end of March compared with £1.03 million for the 12-month reporting period for 2010.
Operating losses were £1.2 million for the extended 2011 reporting year compared with an operating profit of £261,748 the previous year.
Net cash used ran up to £2.1 million compared to £466,000 the previous year, mostly going towards investment to increase manufacturing capacity from an acquisition in Glasgow and upgrading Cramlington.
Edinburgh-based Angel Biotechnology announced last month it had acquired a collagen manufacturing facility in Glasgow in a £200,000 deal which included a 6,500 sq. ft laboratory and offices.
That deal was concluded through a newly formed subsidiary, Angel Biomedical Ltd.
Angel said it had secured seven new contracts and contract extensions in the 15-month period worth £5.3 million, which is the same contract value reported the previous year.
More than half – 58 per cent – of revenues were derived from just one customer, Materia Medica, which Angel said “had remained static” last year, and Angel hopes when the revamped Cramlington facility comes back on line that revenue percentage will reduce.
A new £800,000 contract was announced in April with TransGenRx Inc, which Angel said it would not have won without having the Cramlington plant to fulfil the contract.
However, that contract is dependent upon the Cramlington facility passing The Medicines and Healthcare products Regulatory Agency (MHRA) licensing inspection, scheduled to take place later this month.
Executive chairman Dr Paul Harper said: "The company's resources have been at full stretch throughout this period.
“The task of re-commissioning Cramlington, opening business development discussions with new clients who would use the GMP manufacturing capability of that facility and latterly integrating a new business whilst maintaining full services to all our current clients has presented a considerable challenge.
“Staff at all levels within the business have shown the highest level of commitment and professionalism to deliver the required outcomes.
“The support of our shareholder base in ensuring that we have had the funds to complete these tasks has been important as has the shift towards investment from new institutional investors.
“We will now concentrate on consolidating our business and delivering shareholder value.”