Profits warning from Cyprotex

Macclesfield-based, drug analysis specialist Cyprotex, has warned sales and profits will be lower than expected due to more projects delays.

In an interim statement in August, the group flagged the potential impact of slow progress in development programmes, but today it said there had been “further unforeseen delays”.

This, combined with lower than anticipated demand for services, “will have an impact on revenues, and as a consequence, profitability”.

Cyprotex now expects revenues for the full year to be around £11.7m and earnings before interest, tax, depreciation and amortisation (EBITDA) just above break even.

Chief executive Dr Anthony Baxter said: “Whilst we expect revenues to increase in 2014 by around 20% in excess of 2013’s revenues, the growth has not been as strong as anticipated given the significant investments we have made this year.

“This is because we have experienced unforeseen delays in validating these complex new offerings.  Most of these new developments have now been validated and the new assays and services have now been launched and we expect them to contribute positively to growth in 2015.  Revenues from the newly acquired assets from the CeeTox acquisition have also been softer than expected.”