Cambridge Nutritional Sciences (CNSL), the medical diagnostics company focused on personalised nutrition, saw its shares fall 32% to 1.25p on Tuesday after reporting a drop in sales in the face of challenging market conditions and a sharp drop in its cash reserves.
The AIM-listed company reported revenue of £7.0 million for the year to 31 March, down from £8.3 million a year earlier, which it attributed to challenging market conditions that required internal restructuring.
Gross margin improved to 67.8% from 65.3%, but adjusted earnings before interest, tax, depreciation and amortisation swung to a loss of £400,000 from a profit of £400,000 a year earlier.
Profit before tax fell to a loss of £4.4 million, after a £3 million goodwill impairment, compared with a profit of £1.6 million the previous year.
Cash and deposits fell to £2.6 million from £4.9 million. The company said, "adverse working capital and trading and exceptional costs were the main reason for this fall".
However, investors were told there were sufficient funds "for investment in the next few years".
In the first-half retrospective, the company said production yields had improved from 52% to 65%, increasing capacity and reducing costs, while a new laboratory information management system had improved productivity and turnaround times.
Cambridge Nutritional Sciences said it remained sufficiently funded for its In Vitro Diagnostic Regulation project and future growth.
Chair Carolyn Rand said the company had streamlined its operations and strengthened its leadership during a difficult year, and was entering the new financial year on a stronger footing.
