Incanthera PLC (AQSE:INC) said a deal struck earlier this week is expected to transform the business to one with "significant revenues and profits, generating free cash flow".
On Monday, it announced that Marionnaud, part of the A.S. Watson Group, would be the commercial partner for its skincare range.
Skin + CELL represents Incanthera's foray into high-end skincare, and utilises innovative formulation and delivery expertise to bring scientifically-backed products to the cosmetic industry.
In commentary accompanying Incanthera's half-year results, investors were told: "The post-balance sheet event of the commercial skincare deal is expected to transform Incanthera into a company with significant revenues and profits, generating free cash flow from roll out in Q2 2024."
Alongside the commercial news on Monday, the group also said it had raised £1 million of fresh investment. In the update on Thursday, it said this injection of cash would provide "sufficient working capital to fund the manufacturing of the initial launch orders".
"Once trading in its products starts, the company intends to issue regular trading updates regarding revenue generation and the financial position of the company as the rollout of the commercial deal takes effect in 2024," it added.
The figures largely encapsulate a six-month period in which the company was spending on the development of a product ahead of its commercial launch.
So, it posted a loss of £615,000 for the half year ended 30 September 2023, of which £587,000 were operating expenses.