Evocutis sees sales growth slowing

The Wetherby-based company said it expects to make a pre-tax loss of between £1.0m and £1.2m for the year to July 31.

The group said that following strong revenue growth of 113 per cent in the first half of the financial year, the company’s revenues are expected to grow at a slower rate in the second half.

Total revenues for the year are expected to be around £460,000, up from £227,000 in 2011.

The company’s main revenues come from microbiology and laboratory services using its LabSkin technology.

It added that these tend to be one-off contracts and the timing and size of these contracts is difficult to predict.

At the end of May the group had a £1.7m cash balance and it is debt free. The group said it is confident it has sufficient cash to fund activities for at least the next 12 months.

Interim chief executive Dr Gwyn Humphreys said: “It is disappointing that sales revenue growth in the second half of the year is not as strong as the growth seen in the first half.

“However, total revenues for the year are expected to be approximately double those achieved in the prior year and we anticipate that the loss for the year will be lower than that of the prior year.

“The advancement of our LabSkin technology into a commercially available product for direct sale is an exciting step for the company and this is backed by our consultancy expertise.”

Evocutis changed its name from Syntopix last year.