Proteome Sciences Plc (LON:PRM) CEO Jeremy Haigh joins DirectorsTalk to discuss the release of its Interim results for the six months ended 30 June 2017. Jeremy explains what has driven the strong rise in revenues for the first half of 2017, his thoughts on continued TMT reagent sales, the current structure of the company, the impact of the new Chief Commercial Officer Richard Dennis has had and how Jeremy is viewing the rest of the year.
Financial highlights:
· Total revenues increased 21% to £1.36m (2016: £1.12m)
· TMT® reagent sales and royalties increased 40% to £0.96m (2016: £0.69m)
· Gross profit increased 30% to £0.78m (2016: £0.60m)
· Administrative expenses were £2.45m (2016: £2.27m), including £0.14m of exceptional items to fund laboratory consolidation, relocation and recruitment activities
· Loss after tax £1.45m (2016: £1.50m)
Commenting on these results, Jeremy Haigh, Proteome Sciences plc Chief Executive Officer, said: “We are pleased to report that performance during the first six months of 2017 has been broadly in line with expectations, and revenues significantly ahead of the equivalent period in 2016 driven by strong growth in TMT® sales. This was achieved despite predictable disruption resulting from the consolidation of our laboratory capabilities in Frankfurt and the relocation of our head office to London; these activities increased our administrative expenses for the period compared with 2016 but are expected to generate cost savings from the second half of 2017 onwards.
The presentation of promising data from a prospective trial using the Randox Rapid Stroke Array was sufficient to trigger an important contractual milestone late in the first half and, more critically, also suggest the utility of a future diagnostic including stroke biomarkers covered by our intellectual property.
Commercialisation of our biomarker services remains fundamental to the growth of the company over the next 12 months and has been significantly improved by the arrival in April of Richard Dennis as our Chief Commercial Officer. He brings a deep understanding of our sector and an entirely fresh approach to sales. As we continue to expand the range of our enabling technologies we are convinced that our long-term commitment to proteomics, combined with a renewed focus on the speed, cost and quality of our service delivery, will enable us to remain highly competitive in an increasingly dynamic market.
We have achieved good revenue growth over the first six months and, as in previous years, expect a stronger second half with further progress.”