Graft Polymer (UK) PLC said the first half of the year was a pivotal period as it prepared for the commissioning of its expanded Slovenian plant, which became operational early in the second half.
As the transition to the new bespoke polymer production facility took place, revenue fell 27% to £240,000 and operating losses increased 35% to £1.03 million as expenses increased to support expanding marketing and joint development programmes with clients.
The new plant has doubled production capacity to 6,000 tonnes per year and enabled a wider array of polymer modification to be offered to customers, including biological supplements and drug delivery systems.
Chairman Roby Zomer said the expanded Slovenian plant “paves the way for industrial scale partners working with us”.
“We have been through a pivotal investment period and are working hard to deliver the sales potential of the organisation.”
Contract progress in the period included the GraftBio drug delivery being used by MGC Pharma's ArtemiC COVID treatment gaining approval as an over-the-counter drug in the US and making further commercial inroads since.
Since the commissioning of the plant, contract momentum has really stepped up, with a supply and distribution agreement signed in July with Austrian chemicals company Gabriel Chemie, a distribution agreement with leading US veterinary products firm Inter-Technologies, a manufacturing agreement with an undisclosed Israeli pharmaceutical partner, an R&D and supply agreement with Forpet Baltic for recycled PET and another R&D contract with Mexico-based Empresas Vilher focused on wood plastic composites.
The company hailed the commercial momentum and said its ongoing focus is on sales for the remainder of 2023 and 2024 with a “healthy pipeline and scope for harnessing enlarged operations to win further and larger customer mandates”.
After £1.3 million of capital expenditure invested in the facility, cash stood at £0.52 million at the end of June and the company said it is currently actively seeking additional funding, both non-dilutive and equity.