News blog

Cyprotex

  • BY: Andrew Hore |
  • POSTED: 19/08/2015 |

Richard Sneller, the head of global emerging market equities at Baillie Gifford, has increased his stake in Cyprotex to 8%. 

Sneller’s stake in the contract toxicity research business has increased from 1.55 million to 1.8 million shares – has has owned more than 3% since March 2009. This purchase appears to have fuelled the rise in the share price from 54p to 60p, which is nearly back to the level it was one year ago. The conversion price for the £4m of convertible loan notes and £3m of redeemable loan notes is also 60p a share. The conversion date is 30 September of each year up until maturity in 2018.

Cyprotex has improved its performance in the first half of 2015 but it is still reporting a loss.  Revenues improved 28% to £6.93m and, although it did make an operating profit, the pre-tax loss declined from £428,000 to £387,000. To be fair, there was a £525,000 movement in the derivative value of the company’s loan notes so there was an underlying pre-tax profit.

There was a cash inflow from operations of £1.69m. Capex was less than depreciation following the completion of site investment, most of the interest charge did not flow out in cash and there was a working capital reduction. This helped cash to recover from £2.93m to £4.13m over the six month period. Net debt has declined from £6.31m to £5.7m.

Cyprotex has created a bioscience division, which will provide 2D and 3D cell-based efficacy screening.

House broker N+1 Singer expects a full year profit of £120,000 this year and £260,000 in 2016. This is still a modest profit level. There are potential tax losses of £8m.

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