Celsis cost control sees ’09 profit grow 22%
Celsis International plc, the life sciences products and laboratory services company, total revenue from continuing operations for the year ended 31 March 2009 was down 0.8% at $52.5m but strict cost control saw profit before tax from continuing operations up 21.9% at $12.8m
CEO Jay LeCoque said: "Our performance demonstrates the underlying strength of our business model, in particular our focus on driving higher quality revenues and margins while discontinuing less profitable areas of the business.
"Celsis is a highly cash generative business and we are now even better placed to expand both organically and by acquisition. With targeted investments in new technologies and in expanding our sales and marketing infrastructure, Celsis is well positioned for growth, even in a tougher economic climate."
Celsis' share price gained almost 1% in morning trading. The Cambridge based group is now valued at around £40m.
The company said the current economic situation has had a considerable impact on its primary pharmaceutical customer base, and while its consumer product customers have been less impacted, they have also reduced inventories and slowed production schedules to reflect weakened demand.
During the year, Celsis reviewed core activities and strategies. As a result of organisational changes, it reassessed the Group's business segments and determined that the products and services now offered are "more meaningfully" segmented between two markets, the Pharmaceutical products market and the Consumer products market.
Celsis said its strategy of providing pharmaceutical and consumer product customers with cost-reducing product technologies and outsourced laboratory services was "resonating more now than ever, and we have appropriately rationalised our offerings to best meet the growing needs of our customers".
