SourceBio International PLC (AIM:SBI) said first-half trading in its core business has been strong, led by the Cellular Pathology operation, which was ‘significantly enhanced’ by the £18.5mln March acquisition of LDPath.
For the six months ended June 30, underlying revenues from the lab services specialist were up 63% to £13.8mln. Cellular and Digital pathology posted a four-fold increase in sales to £6.8mln.
"We are encouraged with the progress in the first half and are looking forward to capitalising on further opportunities that we expect in the second half across all core business units,” said chairman Jay LeCoque.
“Our operational focus is the continued rapid scale-up of Cellular Pathology and Digital Pathology volumes through the rest of the year and beyond.”
The group benefited from an increase in demand for its services during the pandemic, which is now largely dropping away as the UK returns to business as usual.
This return to normal is reflected in SourceBio’s total revenues, which were £20.5mln (down from £37.3mln). The former figure included Covid PCR income of £6.6mln, which it said is no longer considered a core line for the company.
Underlying earnings (adjusted EBITDA) for the period are expected to be in the order of £2.1mln, largely reflecting the aforementioned trend. Its cash position on June 30 was a healthy one – it has £15.2mln in the bank.
Chairman LeCoque said he expects a 'very busy' second half.