SourceBio reports positive trading in year to date
By Josh White
Date: Wednesday 15 Jun 2022
(Sharecast News) - Laboratory service provider SourceBio International said in an update on Wednesday that it has traded well since the end of 2021.
The AIM-traded firm, which was holding its annual general meeting, said it was focussed on using its strong balance sheet and cash to accelerate growth in its three core business units - healthcare diagnostics, genomics and stability storage - both organically, and through acquisitions.
Executive chairman Jay LeCoque said that in healthcare diagnostics, the highlight of the period was the "exceptionally strong" market demand for the company's cellular pathology services, driven by the continued shortage of pathologists coupled with the increasing momentum of elective surgeries post-Covid.
"As expected, the timing of the acquisition of LDPath on 8 March has proved to be very favourable to assist the NHS and private healthcare providers in managing this increasing workload of cases," LeCoque said.
"The integration of LDPath within SourceBio is progressing well with LDPath trading ahead of plan.
"In addition, the over-performance of the pre-existing cellular pathology business has enabled the combined businesses to deliver record breaking volumes and revenues from cellular pathology services."
The group's primary challenges were now to deliver the further capacity needed to meet increasing demand for cellular pathology testing services, and to capitalise on the increased rollout of digital pathology services, the company explained.
In the genomics business unit, Jay LeCoque reported a "healthy start" to the year, including the recently-launched precision medicine business line.
"As the business is expanding its testing services offering, it is now working on a fit-out plan in larger premises in Cambridge which it aims to move into during the fourth quarter.
"This has been a critical investment to underpin future growth plans."
Finally, in stability storage, SourceBio said its focus was to further grow its "highly profitable" and recurring revenue-focussed stability storage services, and service and validation, business lines.
"The three stability storage facilities have benefitted from investment and expansion in recent years to support this expected growth," Jay LeCoque said.
"The group has ceased in-house manufacture of stability storage equipment, which was immaterial in revenue terms and unprofitable."
Looking ahead, LeCoque said the firm was investing organically and pursuing "strategically-relevant and earnings-enhancing" acquisitions to augment the growth of its core business units, and to further strengthen its capabilities and offerings.
"The group remains well positioned to support its customers and their requirements and we remain optimistic for the remainder of the year and beyond.
"The board would also like to thank shareholders for their continued support and all our dedicated staff and suppliers for their hard work and efforts."
At 1357 BST, shares in SourceBio International were up 1.6% at 127p.
Reporting by Josh White at Sharecast.com.
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