Jeremy Haigh, Chief Executive of Proteome Sciences LON:PRM, commented: “While progress was slower than we would have wished during 2017, particularly on the services side of the business where early adoption has been challenging, this is not surprising given the scale of change undertaken by the Company in the first half of the year. However, with the benefits of a leaner organisation, a new model for commercial engagement now fully deployed in both our principal operating territories and the reassurance of robust and increasing demand for our TMT(R) reagents, we have the platform necessary to realise the full value of our available proteomic technologies. Following fundamental changes to our services business we are encouraged by stronger performance in the fourth quarter of 2017 and the order book moving into 2018. It is now possible to consider the range of options available to a company with our ambition; I look forward to doing this and to providing further updates throughout the course of the year.”
Driven by strong sales of our TMT(R) reagents and the associated royalties, unaudited revenues for the full year increased by 18% to approximately GBP3.2m (2016: GBP2.7m). Costs of GBP5.1m were 5% lower than the previous year (2016: GBP5.4m) reflecting the early impact of consolidation and restructuring. The Company anticipates a reduced loss before tax of approximately GBP2.1m (2016: GBP2.9m).
While there has been significant volatility in foreign exchanges during the course of the year, affecting non-sterling denominated revenues as well as those costs associated with our primary facility in Frankfurt, the overall effect on EBITDA was neutral.
Cash reserves at the year-end were approximately GBP0.8m despite the delayed payment of a material 2016 R&D tax credit, receipt of which is now expected during the first quarter of 2018. In addition, the Board is pleased with a strengthening order book carried through from late 2017.
The Directors look forward to updating shareholders further on the Company’s performance, and on the outlook for 2018, at the time of the full year results.
Appointment of Sales Agent in Europe
A sales agent model has now been introduced in Europe, similar to that initiated in the US last summer. Cenibra GmbH signed a contract covering German speaking countries and, following training in January, has agreed a selling plan for immediate implementation. We are confident that this engagement will quickly increase our access to a broader client base in Europe and complete the fundamental change necessary for the commercialisation of our services business.