Celsis’ high margin businesses boost 1H pre-tax profits; sees further growth ahead, looks to acquisitions
Celsis International plc, the life sciences products and laboratory services company, said that revenue increased 3.5% to $27.2m in the months to 30 September, while pre-tax profits grew 17.8% to $5.0m.
The Cambridge HQed group said its Rapid Detection division revenue was up 20% to $11.7 m. There were strong instrument placements and reagent sales across industry sectors. Consumable reagent sales now account for 90% of divisional sales.
The In Vitro Technologies division sales were revenue up 13.6% to $5.4m. The Analytical and Development Services division saw a slower first half with revenue down 14.3% to $10.1m, as a result of the slowdown in manufacturing output and timing of large contracts
However the Group's share price shed 7.5% in early morning trading, taking the market capitalisation to around £32m. Celsis market price is hurting like many other shares since the mid September sell-off across markets, though at 143.50p, it is comfortably above recent October lows of 129.00p.
CEO Jay LeCoque said the results benefitted from "robust performance in our higher margin Rapid Detection and In Vitro Technologies products businesses.
"Our continued ability to balance revenues and manage costs in these uncertain economic times underscores the strength of our underlying business model to deliver sustained value for shareholders.
‘Overall, we remain on track to meet our expectations for the year.
"We are confident that our business model, which provides our customers with products and services that save both time and money, is gaining momentum in the current economic environment and will continue to drive the growth of the combined Celsis Group.
"In addition, with the sustained strengthening of the Company's balance sheet combined with our historically strong cash flow, we continue to evaluate new acquisition opportunities to expand our growing business portfolio."
