Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Microsaic shares drop as it warns on revenues amid weak trading continues

However, lower overheads should mean that the full-year loss before tax is broadly in line with what it reported last year
scientist looking into a microscope
Microsaic is looking to different markets to try and improve trading

Microsaic Systems plc (LON:MSYS) shares dropped over 20% today as it warned investors that it expects first half and full-year revenues to be “significantly lower” compared to last year’s numbers.

Back in December towards the end of the last financial year, the AIM-quoted group described market conditions as “challenging”.

Trading has continued to be difficult in its existing markets for small-molecule detection and Microsaic isn’t holding out much hope for a sudden turnaround in 2017.

The projected shortfall in first half and full-year revenues is expected to be offset by lower overheads following the cost reduction plans implemented earlier this year.

As a result, the full-year loss before tax is expected to broadly in line with the £3.4mln loss posted last year.

In late afternoon trading, Microsaic's shares were down 21.9%, or 0.58p at 2.05p.

At the end of May, the firm’s cash position was £4.2mln and it is looking to “extend its cash runway through prudent financial management, co-development income and grants”.

New biopharma strategy

Given the challenging markets in small-molecule detection, Microsaic has been working on the detection of larger molecules during biopharmaceutical manufacturing, or bioprocessing.

The company thinks there is more opportunity and money in this particular sector and is focusing its technical resources and working with partners in order to target the bioprocessing space., bioprocessing

“Despite 2017 proving to be a difficult year in our traditional markets, we are very encouraged with the progress since our 21 March 2017 update, when we introduced our biopharma strategy, specifically around bioprocessing,” said interim non-executive chairman Eric Yeatman.

“We are engaging with several of the leading players in the global market for bioprocessing equipment, and are confident that the new strategic emphasis is opening significant opportunities for our unique technology.

“We do recognise, however, that it will take time to deliver revenue from these opportunities due to the lead time in developing and marketing new products.”

  -- Adds share price --

View full MSYS profile View Profile

Microsaic Systems plc Timeline

Related Articles

1-Operation.jpg
January 18 2017
Deltex’s overseas sales are booming but its previously dominant NHS revenues are dropping off
1511901712_biotech_517925923.jpg
November 29 2017
The company has developed a "unique and superior pressure" cycling technology (PCT), says Zacks.
Frosties Box
December 04 2017
The company is a pioneer in the human microbiome, which is essentially the bacteria that inhabits the gut and skin

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use