"The encouraging first half of the year represents a continuation of the strong
growth and business performance achieved last year and reflects the substantial
opportunities we see for further development across both our Healthcare and
--- ENDS ---
For further information, please contact:
Source BioScience plc
Dr Nick Ash
Chief Executive Officer
Tel: +44 (0) 115 973 9010
For investor and media enquiries:
N+1 Singer (Financial Advisor, Sponsor and Broker)
Aubrey Powell/Joe Stroud
Tel: +44 (0)207 496 3000
College Hill (PR Agency to Source BioScience)
Melanie Toyne-Sewell/Claire Dickinson
Tel: +44 (0) 207 457 2020
This business review may contain forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Actual outcomes and results may differ
materially from any outcomes or results expressed or implied by such
forward-looking statements. Any forward-looking statements made by or on behalf
of Source BioScience speak only as at the date they are made and no
representation or warranty is given in relation to them, including as to their
completeness or accuracy or the basis on which they were prepared. Source
BioScience does not undertake to update forward-looking statements to reflect
any changes in the Group's expectations with regard thereto or any changes in
events, conditions or circumstances on which any such statement is based.
Source BioScience has continued its growth and development throughout the first
half of 2013. In our Interim Management Statement issued on 16 May 2013 we
reported a robust first quarter performance and this has been sustained for the
full six months to 30 June 2013.
Revenue for the six months ended 30 June 2013 increased by 4% to £8.8 million
(2012: £8.4 million) and the gross margin improved to 47% (2012: 45%).
Healthcare grew by 3% to £4.6 million (2012: £4.4 million) and LifeSciences
revenue grew by 6% to £4.2 million (2012: £4.0 million). Both divisions
delivered improved profitability and the combined divisional operating profit,
before central costs, increased by 22% to £2.3 million (2012: £1.9 million).
The Group's cost base has remained tightly controlled; normal administrative
expenses were broadly consistent at £2.4 million (2012: £2.3 million) and
represented 27% of revenue (2012: 28% of revenue).
As a result of the improved divisional performance and the management of the
cost base, adjusted EBITDA* increased by over 20% to £1.5 million (2012: £1.3
million). Profit before tax improved by 42% to £0.6 million (2012: £0.4
million) even after recognising the transaction costs associated with the
acquisition of Inverclyde Biologicals.
The financial position of the Group remains strong with net assets of £16.5
million (31 December 2012: £16.2 million). The Group's cash balance was £2.0
million at 30 June 2013 (31 December 2012: £2.2 million) and borrowings were £
2.7 million (31 December 2012: £3.1 million).