Proteome Sciences issues profit warning after project delays

1st Dec 2023 12:01

(Sharecast News) - Proteome Sciences, the AIM-listed protein sequencing contract research organisation, has warned it will swing to a net loss this year with full-year sales lower than expected.

The company said it expects 2023 revenues to be lower than the £7.8m generated last year as a result of delays to projects, many of which have been postponed to 2024.

"The healthcare industry has faced a very challenging market environment this year, especially in the second half of the year," the company said in a statement.

"In addition to other topical macro-economic headwinds, the company has seen that the biopharma clients have been restrictive on R&D outsourcing expenditure through contract research organisations."

Reduced revenues and costs associated with opening its US laboratory - which should be operational in the coming weeks - means the company will post a net loss for the full year. In 2022, it made a gross profit of £4.8m and earnings before interest, tax, depreciation and amortisation of £2.2m.

The share price was volatile after the announcement, initially slumping to a low of 4.73p, from yesterday's close of 5.26p, before rising 1.7% to 5.35p in afternoon trade.